The Eurozone is on the verge of the biggest economic crisis in history as coronavirus pandemic measures hamper business. The IHS Markit private sector activity indicator has plummeted to its lowest level since the currency bloc was formed more than two decades ago.

The overall Purchasing Managers’ Index (PMI) for the Eurozone in March dropped from 51.6 to 31.4 points, reaching deep below the 50-point line separating contraction from expansion. The PMI for the industry in the region declined from 49.2 to 44.8 points in March, while the PMI for the services sector registered a sharp decrease from 52.6 to 28.4 points.

Disappointing results have also been reported among the largest economies in the Eurozone. In Germany, the PMI contractor index drops from 50.7 to 37.2 points. In the industrial sector, the indicator fell from 48 to 45.7 points, while the meter for the services sector changed its level from 52.5 to 34.5 points.

In France, the overall IHS Markit PMI has dropped from 52 to 37.2 points. The decline in the industry index was from 49.8 to 42.9 points, while the PMI for the services sector reported a drastic decrease from 52.5 to 29 points in March.

The picture does not look much different in Britain, which has been under a complete national blockade since yesterday. The UK PMI fell from 53 to 37.1 points. The industry sector indicator fell from 51.7 to 48 points in March, while the PMI for the services sector declined from 53.2 to 35.7 points.

“Eurozone business activity collapsed in March to a degree far beyond what was seen even in the midst of the global financial crisis”, said Chris Williamson, chief economist at IHS Markit. “Business sentiment for the coming year has collapsed to its darkest record, suggesting that the authorities’ efforts to date have failed to clear up the darker picture”, he added.

The European Central Bank has sought to limit the damage caused by large-scale liquidity injections into the financial system, including an urgent 750 billion EUR (811 billion USD) bond buyback program and measures to target small and medium-sized enterprises.

Governments have begun to increase their fiscal spending and provide loan guarantees in an attempt to protect the economy until the worst of the pandemic is over.

However, Bloomberg Economics estimates that the euro area has been on the path to the largest contraction in its gross domestic product since the creation of the monetary union.