Italy and France slid deeper into an economic slump in January as their services sectors began to crumble, pushing the eurozone uncomfortably close to its third recession in a decade.

Chris Williamson from IHS Markit said manufacturing across the currency zone was tipping into recession. “The worst may be yet to come: new orders received by factories are declining at the steepest rate for nearly six years and new business inflows into the service sector have stalled,” he said.

“The deteriorating picture looks broad-based. Italy is in its steepest downturn for over five years. It’s clear that the business environment is at its most challenging since the height of the region’s debt crisis.”

The data point to eurozone growth of just 0.1pc in the first quarter. Orders books contracted in January for the first time since late 2014, even in Germany.

The slightest external shock at this point risks pushing the bloc into a downward spiral where falling confidence and frozen investment feed on each other and cause recessionary forces to spread.

The financial "non-linear" effects of this could be unpredictable and dangerous, yet there is little sign yet of a policy shift to head off this risk.