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Stark warning of eurozone slump

A stark warning has been sent out that the eurozone economy is set to suffer a significant slowdown after a new survey showed economic decline spreading to core countries such as Germany, led by chancellor Angela Merkel (right).

A series of surveys published suggest that the eurozone will not enjoy any economic growth this quarter.

Preliminary purchasing Management Indexes (PMIs) revealed Europe's economy is stagnating for a second consecutive month with the index readings hitting a new two-year low. The survey will provide little relief to policy makers struggling to contain the euro debt crisis.

Growth indicators in both the services and manufacturing sectors showed declines.-