The Eurozone Flash Purchasing Managers' Index (PMI) Composite Output Index stood at 48.9 in September, contracting for the first time after seven months, S&P Global and Hamburg Commercial Bank (HCOB) revealed in their joint preliminary report on Monday.

The Flash Services PMI Business Activity Index expanded at a slower pace in September and stood at 50.5, hitting a seven-month low. The Flash Manufacturing PMI continued to contract and hit its nine-month low of 44.8.

"The eurozone is heading towards stagnation. After the Olympic effect had temporarily boosted France, the eurozone heavyweight economy, the Composite PMI fell in September to the largest extent in 15 months. The index has now dipped below the expansionary threshold. Considering the rapid decline in new orders and the order backlog, it doesn't take much imagination to foresee a further weakening of the economy," HCOB Chief Economist Dr. Cyrus de la Rubia said.