Tuesday, September 23, 2014

The Eurozone slows dangerously. Increase the risks for the future – The Messenger

The Eurozone slows dangerously. Increase the risks for the future – The Messenger

Continue to curb the growth of the Eurozone, which highlights a growing business at the weakest rate seen so far year to date, in line with what was said yesterday by ECB President Mario Draghi.

The flash estimate PMI composite index, prepared by Markit, indicates a decrease to 52.3 points from 52.5 in the previous month. The PMI manufacturing index drops to 50.5 points from 50.7 in August, in line with consensus, while the service sector decreased from 53.1 to 52.8 points, compared with 53 expected by the market.

A slowdown has helped motivate the inflow of new orders, which proved to be modest, while employment has remained largely unchanged once again, as companies have limited new hires due to the slight increase in sales.

Looking at the individual countries, growth in Germany is faster (54 points), led by the service sector (55.4 points), but was offset by the continued decline in French ( 49.1 points) and the slowdown in growth in the rest of the region.

The data of the survey, according to Markit, suggest that GDP growth goes to a maximum of 0.3% in the third quarter, encouraged the expansion of 0.4% in Germany, but slowed down by stagnation in France and the weak growth in the rest of the single currency.

“There are also worrying signs that growth may slow further in the fourth quarter, “revealed the chief economist Chris Williamson, pointing out that the flow of new orders in the manufacturing sector is slowing down again and the expectations from the companies on the activities for the next twelve months have worsened.

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