WASHINGTON/LONDON (Reuters) – The euro zone’s services sector shrank for the first time in two years in September as new orders dried up, stoking fears that the region’s economy could be heading back into recession.

Meanwhile U.S. data on Wednesday confirmed the economy was narrowly avoiding another recession and globally growth in both the manufacturing and services sector accelerated slightly last month according to JPMorgan’s Global All-Industry Output index.

WASHINGTON/LONDON (Reuters) – Private sector business activity shrank in the euro zone for the first time in two years last month as new orders dried up, stoking fears that the economy could be heading back into recession, surveys showed on Wednesday.

A downturn that began in smaller members of the 17-nation bloc has hit the core, and survey compiler Markit said the latest figures suggest the region’s economy will contract in the fourth quarter unless business and consumer confidence rallies.

WASHINGTON/LONDON, Oct 5 (Reuters) – Private sector
business activity shrank in the euro zone for the first time in
two years last month as new orders dried up, stoking fears that
the economy could be heading back into recession, surveys
showed on Wednesday.

A downturn that began in smaller members of the 17-nation
bloc has hit the core, and survey compiler Markit said the
latest figures suggest the region’s economy will contract in
the fourth quarter unless business and consumer confidence
rallies.

WASHINGTON (Reuters) – The Federal Reserve is prepared to take further steps to help an economy that is “close to faltering,” Fed chairman Ben Bernanke said on Tuesday in his bleakest assessment yet of the fragile U.S. recovery.

Citing anemic employment, depressed confidence, and financial risks from Europe, Bernanke urged lawmakers not to cut spending too quickly in the short term even as they grapple with trimming the long-run budget deficit.

WASHINGTON, Oct 4 (Reuters) – The Federal Reserve is
prepared to take further steps to help an economic recovery
that is “close to faltering”, Fed Chairman Ben Bernanke said on
Tuesday.

Citing anemic employment, depressed confidence and
financial risks from Europe, Bernanke urged lawmakers not to
cut spending too quickly in the short term even as they grapple
with trimming the long-run budget deficit.

WASHINGTON (Reuters) – The Federal Reserve is prepared to take further steps to help a fragile economic recovery held back by a weak job market and financial stresses in Europe, Fed Chairman Ben Bernanke said on Tuesday.

“The Committee will continue to closely monitor economic developments and is prepared to take further action as appropriate to promote a stronger economic recovery in the context of price stability,” Bernanke said.

WASHINGTON (Reuters) – Two top Federal Reserve officials on Monday defended the central bank’s most recent effort to boost growth, with one suggesting further steps may be justified.

The central bank last week, warning of “significant” downside risks to the economy, announced it would weight its $2.85 trillion portfolio more heavily with longer term securities in an effort to drive borrowing costs lower.

WASHINGTON (Reuters) – Two top Federal Reserve officials on Monday defended the U.S. central bank’s most recent effort to boost growth, and one suggested further steps may be justified.

The Fed last week, warning of “significant” downside risks to the economy, announced it would weight its $2.85 trillion (1.84 trillion pound) portfolio more heavily with longer term securities in an effort to drive borrowing costs lower.

WASHINGTON (Reuters) – Expanded Federal Reserve efforts to boost tepid growth and cut high unemployment are justified as broken housing markets and depleted household wealth act as a brake on the recovery, a top Fed official said on Monday.

Even though the effect of aggressive Fed policies to ease financial conditions has been muted by declines in house values and consumer reticence, it would be wrong to conclude central bank actions are useless, Federal Reserve Governor Sarah Raskin said.