From TWSJ by Emma Charlton titled: Purchasers Index Hints at Euro-Zone Economy Woes 9/22
"A Sharp deterioration of the index in the survey of European purchasing managers suggests the rising euro and spreading credit crunch are casting a shadow over the euro zone's economy. The report offered new ammunition to politicians calling for the European Central Bank to cut interest rates.
NTC Economics said its purchasing managers index for the euro zone's manufacturing sector fell to 53.2 from 54.3 in August, while the index for the services sector dropped to 54 from 58. A combined measure slid to 54.5 from 57.4, the steepest drop since a decline recorded in the aftermath of the Sept. 11, 2001, terrorists attacks.
Euro-zone business confidence has been knocked down by the ongoing financial crisis and now the growth outlook is significantly threatened, at least in the short run. According to the ECB, the euro zone'ssurpluses in its trade in goods and in services both narrowed substantially in July. That's a sign that the recent strength of the euro is beginning to hurt exporters. In all, this looks rather worrying.
While the ECB seems to have maintained its tightening bias for now, any further signs of slowing activity could easily prevent it from hiking again in this cycle. In the wake of recent market turbulence, the ECB, which had been moving toward another rate increase because of worries about inflation, decided to hold its key interest rate at 4%.
If the (purchasing-manager) readings are confirmed by the other data over the coming months, the ECB may stay sidelined for a long period, even if financial markets return to normal." Man, that's what I was looking for - sure took long enough to spit it out.