European services, manufacturing fall more than forecast

ZURICH - Euro-area services and manufacturing output contracted for the first time in more than two years in September as the region's worsening debt crisis added to concerns that the economy could slide back into a recession.

A composite index based on a survey of purchasing managers in both industries fell below 50, indicating contraction, for the first time since July 2009, London-based Markit Economics said in an initial estimate on Thursday.

The index declined to 49.2 this month from 50.7 in August. Economists had forecast a drop to 49.8, according to the median of 17 estimates in a Bloomberg News survey.