Germany’s manufacturing recession is threatening to spread to the wider economy and across the eurozone, casting a shadow over Mario Draghi’s final meeting in charge of the European Central Bank and putting his legacy at risk.

The slump in the eurozone’s largest economy showed signs of broadening as employment fell for the first time in six years, according to IHS Markit’s survey of businesses, while there is little more the ECB can do to prop up growth.

The purchasing managers’ index remains firmly in negative territory with a score of 48.6 in October. Any number below 50 indicates private sector activity is shrinking.

Manufacturing is mired in recession with a PMI of 41.9, sapping the life from services which slowed again to 51.2, close to stagnation levels.

Private sector employment fell for the first time since 2013, as businesses find they cannot keep staff on the payroll forever when orders are simply not appearing.

It is a dire sign for the economy.