Euro-zone Feb. composite PMI falls to 49.3 (by William L. Watts)

FRANKFURT (MarketWatch) -- The Markit euro-zone composite purchasing managers index fell to 49.3 in February from 50.4 in January, coming in below an earlier, preliminary estimate of 49.7, data showed Monday. A reading of less than 50 indicates a contraction in private-sector business activity. "At this stage, our best estimate is that the region's GDP will have contracted by 0.1% in the first three months of the year. Perhaps more worryingly, the ongoing steep declines signaled by the weak surveys for Italy and Spain suggest that a return to growth for these countries still looks to be a long way off," said Chris Williamson, chief economist at Markit. On a national level, Germany's composite PMI fell to a two-month low of 53.2 in February. Italy's PMI dropped to 44.7, while Spain dropped to 42.9 -- both figures are two-month lows.

U.K. services PMI signals slower growth for sector (by William L. Watts)

FRANKFURT (MarketWatch) -- Activity in Britain's service sector grew at its slowest pace in three months in February, according to a survey of purchasing managers released Monday. The Markit/CIPS services purchasing managers index fell to 53.8 from a reading of 56.0 in January. A reading of mroe than 50 indicates growth in activity. Economists surveyed by Dow Jones Newswires had forecast a decline to 55.0. "Despite seeing some loss of momentum in February, the service sector continued to grow at a robust pace, adding to signs that a double-dip recession will be avoided," said Chris Williamson, chief economist at Markit. "So far this quarter, the sector has notched up its best performance since the spring of 2010, when the economy was rebounding strongly from the recession."