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Overall the 17 nations that make up the eurozone saw economic activity shrink 0.3% in the fourth quarter.
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Manufacturing figures, meanwhile, showed activity shrinking for the seventh consecutive month.
Figures yesterday showed the eurozone's services sector activity shrunk more than originally expected in March.
Manufacturing activity shrank in December, while increasing in the rest of Europe.
Economists were most alarmed by data from France, where manufacturing activity shrank at the fastest rate in almost three years.
Manufacturing jobs actually declined, and manufacturing activity shrank after 18 months of growth, according to a purchasing managers' index.
Purchasing managers index surveys showed euro zone business activity shrank in May, but at a slightly slower pace.
"When the borrowed money finished, the state could no longer finance its expenses, consumption fell and economic activity shrank".
The new downturn came on top of official data showing Greek manufacturing activity shrank for the 10th month in a row during June.
Any reading below 50 suggests activity shrank in the services sector, which includes everything from transportation to legal and financial services.
In neighboring France, data from Markit showed that business activity shrank in January at the fastest pace since the trough of the global financial crisis.
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