The Markit composite purchasing managers’ index, which measures the growth in manufacturing and services sectors, has reported significant downturns in major European economies.

Germany has approached “near stagnation” as the PMI index declined from 53.3 to 50.6. Any index above 50 indicates growth. Economists say the sharp downturn in German manufacturing could have significant effect across the Eurozone.

“The [eurozone] recession is deepening once again as businesses report that they have become increasingly worried about the region’s debt crisis and political instability,” Chris Williamson, Markit chief economist, told the BBC. “The unresolved election in Italy was commonly cited as a key factor clouding the economic outlook in March, and the botched bail-out of Cyprus could well filter through to a further worsening of business sentiment across the region in April.”

Germany’s reading was the worst in three months. France’s index fell to 41.9 as the country’s economy continues to sink further into recession. The entire Eurozone fell 1.4 to 46.5 in February.