The eurozone looks destined for its second recession in three years, as
business surveys showed the economic rot is even spreading to Germany,
the region's largest and strongest economy.
Markit's Flash eurozone composite PMI, which measures manufacturing and services activity, edged up to 46.6 in August.
Although this was marginally better than the 46.5 forecast by economists, it is the seventh month that the PMI has fallen below the 50 level that divides growth from contraction.
The data suggested that the eurozone will contract by between 0.5pc and 0.6pc in the third quarter as orders for new business decline.
A debt crisis which began in the euro zone's smaller economies is now hammering business and consumer confidence across the bloc, putting pressure on policymakers to take radical steps to help vulnerable countries such as Spain and Italy.
More worryingly, the rot in smaller euro zone economies is now taking root in the core, with the flash composite PMI for Germany, falling to a three-year low of 47.0 in August.
Markit's Flash eurozone composite PMI, which measures manufacturing and services activity, edged up to 46.6 in August.
Although this was marginally better than the 46.5 forecast by economists, it is the seventh month that the PMI has fallen below the 50 level that divides growth from contraction.
The data suggested that the eurozone will contract by between 0.5pc and 0.6pc in the third quarter as orders for new business decline.
A debt crisis which began in the euro zone's smaller economies is now hammering business and consumer confidence across the bloc, putting pressure on policymakers to take radical steps to help vulnerable countries such as Spain and Italy.
More worryingly, the rot in smaller euro zone economies is now taking root in the core, with the flash composite PMI for Germany, falling to a three-year low of 47.0 in August.
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