Activity has remained slow in the Eurozone this quarter which has led to a gloomy medium-term outlook for the 17 state area.

The German economy has also seen it's first drop since November which has exacerbated the situation across Europe.

A survey carried out by Markit Economics today said its composite purchasing managers' index for the eurozone, which is a measure of activity in the services and manufacturing sectors, was unchanged at 46.5.

A reading below 50.0 indicates a contraction in the economy.

New business has continued to dry up and job cuts have been ongoing for the 16th consecutive month, signalling that the eurozone's unemployment rate is likely to be pushed above 12%.

Chief economist with Markit, Chris Williamson says the slump will more than likely mean an intensified contraction in growth in the coming months.