Related News
Survey shows eurozone slipping into recession
Source: Agencies |
November 24, 2011, Thursday
|
Print Edition
Print Edition
HOPES that the 17-country eurozone will avoid recession in the wake of a debt crisis appeared to have been dashed yesterday.
Indicators show the eurozone's economy is in deep trouble and the debt crisis is denting confidence so badly a recession seems almost inevitable. Figures last week showed the region narrowly avoided contracting in the third quarter, growing by only 0.2 percent.
The sense of impending recession was evident in the findings of a survey by financial information company Markit.
Its monthly survey showed the eurozone contracted for the third month running in November and the deteriorating economic picture is not confined just to debt-stressed countries such as Greece.
Though its monthly composite Purchasing Managers Index - a broad gauge of business activity - rose to 47.2 in November from 46.5, it remains below the 50 mark, the threshold between expansion and contraction.
Markit said its survey suggests the eurozone is contracting at a quarterly rate of 0.6 percent in the fourth quarter and the problems are increasingly spreading to Europe's two biggest economies, Germany and France.
"As feared earlier in the year, malaise has spread from the periphery to the core," said Chris Williamson, Markit's chief economist. "Even Germany is stagnating and France is contracting by around 0.5 percent."
Further grim news emerged with the announcement that eurozone industrial orders slumped by a huge 6.4 percent in September from the previous month. Though this data is historically volatile - one big Airbus order can cause big swings, for example - the figures provide further uncomfortable reading for politicians battling the debt crisis.
James Ashley, an economist at RBC Capital Markets, said: "The recent survey points to a further deterioration in industrial sector conditions, so the news reinforces our expectation of an industrial sector recession."
The euro took a battering in the wake of the figures, dropping 0.9 percent to US$1.3389.
Analysts said the figures are likely to pile pressure on the European Central Bank to cut interest rates again, possibly as soon as next month.
In November, it reversed recent policy, cutting its benchmark interest rate by a quarter of a percentage point to 1.25 percent amid mounting worries over the state of the eurozone's economy.
Indicators show the eurozone's economy is in deep trouble and the debt crisis is denting confidence so badly a recession seems almost inevitable. Figures last week showed the region narrowly avoided contracting in the third quarter, growing by only 0.2 percent.
The sense of impending recession was evident in the findings of a survey by financial information company Markit.
Its monthly survey showed the eurozone contracted for the third month running in November and the deteriorating economic picture is not confined just to debt-stressed countries such as Greece.
Though its monthly composite Purchasing Managers Index - a broad gauge of business activity - rose to 47.2 in November from 46.5, it remains below the 50 mark, the threshold between expansion and contraction.
Markit said its survey suggests the eurozone is contracting at a quarterly rate of 0.6 percent in the fourth quarter and the problems are increasingly spreading to Europe's two biggest economies, Germany and France.
"As feared earlier in the year, malaise has spread from the periphery to the core," said Chris Williamson, Markit's chief economist. "Even Germany is stagnating and France is contracting by around 0.5 percent."
Further grim news emerged with the announcement that eurozone industrial orders slumped by a huge 6.4 percent in September from the previous month. Though this data is historically volatile - one big Airbus order can cause big swings, for example - the figures provide further uncomfortable reading for politicians battling the debt crisis.
James Ashley, an economist at RBC Capital Markets, said: "The recent survey points to a further deterioration in industrial sector conditions, so the news reinforces our expectation of an industrial sector recession."
The euro took a battering in the wake of the figures, dropping 0.9 percent to US$1.3389.
Analysts said the figures are likely to pile pressure on the European Central Bank to cut interest rates again, possibly as soon as next month.
In November, it reversed recent policy, cutting its benchmark interest rate by a quarter of a percentage point to 1.25 percent amid mounting worries over the state of the eurozone's economy.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
