Euro-zone PMI shows faster contraction in March (by William L. Watts)

FRANKFURT (MarketWatch) -- A contraction in private-sector activity across the 17-nation euro zone accelerated in March, underlining fears the region has fallen back into recession, according to a preliminary composite purchasing managers index, or PMI, for the region compiled by Markit. The composite PMI fell to a three-month low of 48.7 from 49.3 in February. The services index edged down to 48.7 from 48.78 in February, while manufacturing PMI fell to 47.7 from 49.0. A reading of less than 50 indicates a contraction in activity. Economists surveyed by Dow Jones Newswires had forecast a composite PMI reading of 49.6. "The euro-zone economy contracted at a faster rate in March, suggesting that the region has fallen back into recession, with output now having fallen in both the final quarter of last year and the first quarter of 2012," said Chris Williamson, chief econonomist at Markit. A recession is widely defined as two consecutive quarters of shrinking gross domestic product.