BRUSSELS - BUSINESS activity in the 15 nations sharing the euro slumped in December to a new low in the face of recession although not so much as expected, according to a widely watched survey on Tuesday.

The eurozone's purchasing managers' index (PMI), compiled by data and research group Markit, dropped to 38.3 points in December from 38.9 in November, according to an initial estimate.

The figure, which brought the index to its lowest level in the survey's 10-year history, was better than economists' estimates for a fall to 37.6 points.

'The further decline in the eurozone manufacturing and service sector purchasing managers surveys in December may have been less than feared, but these are still awful surveys,' said economist Howard Archer at consultants IHS Global Insight.

Markit said that the index's fall marked the seventh month running of contraction in private sector output, which is indicated by a reading of less than 50 points.

The index for activity in the eurozone's vast services sector also retreated, falling to 42.0 points from 42.5 in November, while manufacturing activity plunged to 34.5 from 35.6 in November.

'Indeed, the eurozone economy is going from bad to worse,' said Mr Archer, adding that the surveys suggested the eurozone economy would probably shrink more in the final quarter of 2008 than the 0.2 per cent contraction seen in the second and third quarters. -- AFP