By Oliver Tree and Gianluca Mezzofiore
"The euro zone is about to enter its second recession in three years, according to a survey of private sector output.
"The Markit Flash Eurozone PMI Composite Output Index, a measure of services and manufacturing order volumes, was 46.6 in August, down from 46.5 in July.
"The 0.5 percent to 0.6 percent drop is the seventh consecutive monthly contraction, signaling another recession is in the cards as the single currency area continues to battle rising debt, waning confidence and falling economic output.
"A continued drop in new business for firms was a catalyst in the August contraction, while new export orders for manufacturers slumped again for the fourteenth month running, according to data firm Markit's euro zone composite purchasing managers' index (PMI) survey.
"The data "reinforces the prevailing view of the economy dropping back into recession during the third quarter of 2012," said Rob Dobson, senior economist at Markit, whose flash report is based on 85 percent of the available data. ..."