Euro-using nations officially in recession

BRUSSELS, Belgium (AP) — The 15 countries that use the euro are officially in a recession, the European Union said Friday, as their economies shrank for a second straight quarter because of the world financial crisis and sinking demand.

The euro zone shrank 0.2 percent in both the third and second quarters from the quarter before, further stoking expectations the European Central Bank will cut interest rates to limit the economic damage. Two successive quarters of shrinkage is one common definition of a recession.

The spending slowdown and tight credit conditions have industry hurting across the continent: carmakers, a major source of exports in countries such as Germany, said sales are slumping.

It is the first such slump faced by the ECB since the euro was introduced in 1999.

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