It seems that after Greece, Ireland and Portugal, it’s the turn of Italy and Spain to merge under the flow of debt crisis. Due to slowdown in these countries, Markit Eurozone Services Purchasing Managers' Index (PMI) for July has decreased by 51.6.

The main reasons for the cause of weak output growth, are said to be the stagnation of inflows of incoming new business; due to the week condition prevailing in the domestic markets; the new work has also slowed down; decline in the new manufacturing export business (including intra-Eurozone trade); increase in the business, in countries like Germany and France slowed down drastically.

Though there was 15% increase in the employment, due to the start of new businesses, Germany remained week in providing jobs.

The decline in the PMI was lowest since December 2009. Slower services output growth mainly reflected a weaker rate of increase in new business inflows. Initially, France and Germany were on the growth track, but slowly it faced a 16-month low in France and a 17-month low in Germany. Spain is not in counting, as fell back into contraction territory, with activity falling at the fastest pace since December 2010.