Europe shows signs of recession as PMI drops

ZURICH - European services and manufacturing output contracted in October at the fastest pace in more than two years, adding to signs the region's economy is edging toward a recession.

A eurozone composite index based on a survey of purchasing managers in both industries fell to 47.2 from 49.1 in September, London-based Markit Economics said in an initial estimate on Monday. That's the lowest since July 2009 and below the 48.8 forecast by economists, according to the median of 17 estimates in a Bloomberg survey.

The European Central Bank (ECB) earlier this month resisted calls to lower interest rates, instead extending its use of unconventional tools, even as the economy is showing signs of a deepening slowdown. German investor confidence dropped to the lowest in almost three years this month.