BRUSSELS: Business activity in the 18-nation eurozone slowed further in September, a key survey showed on Tuesday, adding to concerns that a timid economic recovery could be close to stalling.

Markit Economics said its Composite Purchasing Managers Output Index (PMI) fell for a second consecutive month, hitting a nine-month low of 52.3 points in September from 52.5 points in August.

The figures paint “a picture of ongoing malaise in the eurozone economy,” said Chris Williamson of Markit Economics.

“With growth of output and demand slowing, employment once again failed to show any meaningful increase,” Williamson said.

Weak demand can only put further pressure on prices, he said, and so add to the danger of deflation.

Deflation is an outright fall in prices and can lead consumers to put off purchases in the belief they can be made more cheaply if they wait.

Published in Dawn, September 24th, 2014