Data point to deepening eurozone crisis Germany's manufacturing sector, the engine of Europe's economic growth, slumped in October, dragging the entire eurozone into further decline as private sector activity in the 17-country single currency area plunged at the fastest rate since June 2009. Purchasing managers" indices for Germany showed manufacturing and services activity fall unexpectedly to 48.1 in October from 49.2 in September - significantly below the 50 mark, which indicates a contraction - driven by a sharp drop in the automobile sector and exports to southern Europe. Meanwhile, German manufacturing dropped to 45.7 in October from 47.4 the previous month, according to the data from Markit Economics. The slowdown in private sector activity in Europe's largest economy was also reflected in Germany's bigger-than-forecast drop in business sentiment. The Ifo Institute's business climate index, which questions executives at 7,000 companies, fell for the sixth successive month to 100 in October from 101.4 in September. "Signs of a slowdown at automobiles producers ... contributed to weaker orders for suppliers of intermediate goods to the sector," said Tim Moore, senior economist at Markit. At the same time, relatively subdued investment spending in Asia was reported to have weighed on capital goods exports. Germany's sharp slowdown showed how the sovereign debt crisis afflicting southern European countries is spreading at a faster rate than expected to traditionally more robust northern economies. Although France's private sector PMI data showed a modest improvement in October compared to the previous month, manufacturing and services output continued to contract at a rapid pace. The French composite PMI figure rose to 44.8 in October compared to 43.2 in September, according to Markit. However, the greater concern was that a larger-than-expected German contraction could further drag down the entire eurozone economy into a deeper recession. Eurozone PMI for manufacturing and services fell to 45.8 in October from 46.1 in September as output continued to drop throughout the bloc due to a further marked contraction in new orders. "The October manufacturing and services purchasing managers surveys worryingly indicate that the eurozone downturn is, if anything, deepening rather than easing," said Howard Archer European economist at IHS Global Insight Domestic demand in the Eurozone is being handicapped by tighter fiscal policy in many countries, limited consumer purchasing power, and high and rising unemployment. The manufacturing sector continued to show clear signs of distress as the eurozone crisis has dented revenues at Europe's largest industrial groups - forcing many groups to shut plants or shed thousands of jobs. Ford became the last leading automaker to shut a plant in Europe on Wednesday after union workers said that the US group had decided to shut its main factories in northern Belgium by the end of 2014. The move will lead to the loss of 4,500 job at Ford and 5,000 more among subcontractors. Earlier this year Peugeot was forced to shut down a plant in France, axing about 6,500 jobs, while Fiat warned that it may be have no other option but follow suit by shutting down a factory in Italy.