Eurozone risks return to contraction

London

THE eurozone economy may face another contraction after business activity grew less than expected in November despite heavy discounting, surveys on Wednesday showed, although Asian readings were more upbeat.

Firms across the eurozone cut prices again. That, and signs that the bloc's core economies are struggling, will concern the European Central Bank which has launched a raft of measures to revive growth and drive up dangerously low inflation.

In contrast, a survey covering China's services industry showed slightly faster expansion. But after data on Monday said that manufacturing growth was at its weakest in at least six months, it may not be enough to allay concerns about a softening economy. "There are clear downside risks to various areas of the world economy including the eurozone and to some extent China," said Philip Shaw, chief economist at Investec. "The eurozone numbers do indicate the economy is moving forward but at a snail'…