In September the Eurozone’s economic downturn deepened, as the bloc endured a third consecutive month of contracting business activity, according to a new survey by S&P Global showed.

The report found that skyrocketing energy costs are hitting manufacturers hard across the 19 member bloc, as the Purchasing Managers Index hit its lowest level since 2013. The PMI fell from 48.9 in August to 48.2 in September.

S&P Global economist Chris Williamson said in a statement, that surging energy prices and rising costs of living are, “not only hitting demand but also limiting manufacturing production and service-sector activity in some cases.”

Williamson warned, “A Eurozone recession is on the cards,” and that, “Germany is facing the toughest conditions, with the economy deteriorating at a rate not seen outside of the pandemic since the global financial crisis.”

The report showed demand is at its lowest level in the Eurozone since November of 2020, as they bloc was in the depths of the coronavirus pandemic. The business expectations index also fell to its lowest level since May of 2020, dropping to 53.8, from August’s level of 56.6.

S&P Global is predicting the Eurozone economy will decline by 0.1% in the third quarter.