Euro-Zone Data Indicate Greater Risk of Recession

FRANKFURT -- A bevy of data confirmed that the 15-nation euro zone's $12.2 trillion economy is deteriorating rapidly amid high commodity costs, slowing global demand and the strong euro.

The data, including surveys of business activity and confidence released Thursday, raised the risk of recession this year and compounded the challenge for the European Central Bank because inflation appears to be persisting as well.

A key survey of purchasing managers at 5,000 euro-zone firms showed that activity contracted for the second month in a row, hitting its lowest level since November 2001. The RBS/Markit survey, which measures indicators such as ...