Eurozone Factory Activity Hits Three-Year Low

Manufacturing in the eurozone shrank in July at the fastest rate since June 2009, according to London-based Markit.

Markit's index, which is based on surveys of purchasing managers, dropped to 44 last month from 45.1 in June. Any reading below 50 indicates contraction. Sharp declines in production and new orders contributed to the deterioration, Markit says.

The index's measure of job losses was the worst in more than two years. Employment dropped most in France, Germany, Italy and Spain.

Markit's index sank two points to a three-year low of 43 in Germany last month, 1.8 points to 43.4 in France and three points to 45.4 in the U.K.