Manufacturing and service sector output in the eurozone contracted for another month in June (Reuters)

Eurozone manufacturing and service output contracted for the fifth month in June, according to a leading private industry index, as the single currency area continues to carry the burden of debt and political crises.

Though the rate of decline slowed slightly, reported purchasing managers in a survey compiled by financial researchers Markit, sharp falls in new business for both sectors indicate that there will be no recovery in the near future - marked by a big decline in outlook confidence.

"Job losses are mounting as a result of falling demand, as companies seek to reduce costs and prepare for the possibility that worse is to come," Chris Williamson, chief economist at Markit, said.

"Service sector companies' expectations for the year ahead showed one of the largest declines in the history of the survey, pointing to a huge drop in confidence due to the worsening political and economic crises."

The composite eurozone purchasing managers index (PMI) figure rose to 46.4 in June, up from the previous month's 46. Anything over 50 represents growth in output, while anything under represents a contraction.

Confidence in the service sector fell to its lowest since March 2009, while employment fell for the sixth month in a row.

Likewise manufacturing saw a sixth month of falling employment levels.

Germany, the eurozone's powerhouse economy, appears to have seen falling output in June.

"Even Germany looks to have fallen into a renewed decline, though only a very modest drop in output is signalled," Williamson said.

"The pace of downturns in other major euro member states is far more worrying.

"Output in Italy looks to have fallen by 1 percent in the second quarter, while declines of 0.6 percent and 0.5 percent are signalled for Spain and France respectively."