Monday Jan 26, 2015 Search
Weather | Athens
15o C
9o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Eurozone business growth slows in July, prices fall: PMI

Robot arms coat a Porsche Macan at the new plant in the eastern German city of Leipzig February 5, 2014.

By Jonathan Cable

Eurozone private business growth slowed more than expected this month, despite widespread price cutting, as manufacturing and service industry activity both dwindled, a survey showed on Thursday.

Euro zone economic growth ground to a halt in the second quarter, dragged down by a shrinking economy in Germany and a stagnant France, even before any impact from sanctions imposed on and by Russia over Ukraine.

Markit's Composite Purchasing Managers' Index (PMI) will provide gloomy reading for the European Central Bank (ECB), suggesting its two biggest economies are struggling like smaller members.

Based on surveys of thousands of companies across the region and a good indicator of overall growth, the Composite Flash PMI fell to 52.8 from July's 53.8, far short of expectations in a Reuters poll for a modest dip to 53.4.

However, readings above 50 still indicate expansion. Markit said the data point to third-quarter economic growth of 0.3 percent, matching predictions from a Reuters poll last week.

"We are not seeing a recovery taking real hold as yet. We are not seeing anything where we look at it and think 'yes, this is the point where the euro zone has come out of all its difficulties',» said Rob Dobson, senior economist at Markit.

The euro zone has also yet to feel the full effect of escalating tensions with Russia.

Europe stung Moscow with economic sanctions, prompting a tit-for-tat response from Russian President Vladimir Putin, over the Kremlin's support for rebels in eastern Ukraine.

The composite PMI in Germany - Russia's biggest trade partner in the European Union which has already seen exports to the country plunge in the first half of the year - fell to 54.9 from 55.7.

For France, the euro zone's second largest economy, the Composite PMI rose from 49.4 to the break-even mark at 50.

PRICES FALL

Struggling to support growth while battling the threat of deflation, the ECB is providing another round of temporary access to cheap cash for banks. There is also a one-in-three chance it embarks on an asset purchase program next year, a Reuters poll showed.

Consumer prices in the euro zone rose just 0.4 percent on the year in July, the weakest annual rise since October 2009 at the height of the financial crisis, and well within the ECB's «danger zone» of below 1 percent.

Worryingly, according to the composite output price index firms cut prices for the 29th month - and at a faster rate than in July. It dipped to 48.9 from 49.0.

Also of concern, suggesting factories do not expect things to improve anytime soon, manufacturing headcount fell at the fastest rate in nine months. The sub-index dropped to 49.1 from 49.9.

Optimism about the future also sank among services firms - the business expectations index plummeted to 58.6 from 61.7, its lowest reading in a year.

The manufacturing PMI fell to 50.8 from 51.8, below the consensus forecast for 51.3 and its lowest since July 2013. The output index, which is used to calculate the composite PMI, sank to 50.9 from 52.7. The services PMI fell in line with expectations to 53.5 from 54.2.

[Reuters]

ekathimerini.com , Thursday August 21, 2014 (11:21)  
Talks with troika the main test
Fiscal gap from revenues at 2.3 bln euros
Liquidity noose tightening around local lenders’ necks
Banks make plans for tackling impact of Swiss franc’s growth on borrowers
BLOG
Greek Elections 2015: The day after | LIVE
Welcome back to Kathimerini English Edition's election blog. After a historic win for SYRIZA on Sunday, the business of trying to form a government starts today. Alexis Tsipras is due to rec...
SYRIZA heads for historic victory but without majority
SYRIZA was on the verge of a historic election victory on Sunday night but one that might not hand the leftist party an outright parliamentary majority, raising doubts about whether a govern...
Inside News
SOCCER
Olympiakos overcomes depleted OFI at Iraklio
Easy though it may seem, Olympiakos’s 3-0 win at depleted OFI Crete was rather difficult on Saturday, but was enough to keep the Reds on top on Saturday, as they have maintained their two-po...
BASKETBALL
Tremendous Spanoulis sweeps Laboral Kutxa
A hot second half was enough for Olympiakos to undo visiting Laboral Kutxa and score its fourth win in as many games at the second round of the Euroleague on Friday. The 76-64 final score wa...
Inside Sports
COMMENTARY
SYRIZA´s win will test institutions
Greece was at an impasse, with a government that did not believe in what it was doing and an opposition that declared with passionate intensity that whatever the government did was wrong and...
COMMENTARY
The challenge for Tsipras and others
A few years ago, an associate of mine who had met with Alexis Tsipras when the young politician was running for Athens mayor told me how impressed he had been by his confidence. Tsipras was ...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek Elections 2015: The day after | LIVE
2. SYRIZA heads for historic victory but without majority
3. Prison probes violent attack against N17 convict Xeros
4. Talks with troika the main test
5. Fiscal gap from revenues at 2.3 bln euros
6. Liquidity noose tightening around local lenders’ necks
more news
Today
This Week
1. SYRIZA heads for historic victory but without majority
2. Greek Elections 2015: The day after | LIVE
3. SYRIZA's win will test institutions
4. SMART WATER Project: Outputs and conclusions of the final conference
5. Greek Elections 2015 | LIVE
6. Greek Elections 2015 Results | LIVE
Today
This Week
1. Greek Elections 2015 | LIVE
2. Grexit the only way out of ‘valley of tears,’ says Hans-Werner Sinn
3. Greek Elections 2015 | LIVE
4. No debt writedown or rolling back of reforms for Greece, says Finland's Stubb
5. Greeks fork out nearly 5 pct of their incomes on telecom services
6. QE exclusion a ‘de facto Grexit’
Advertiser Link
SMART WATER Project: Outputs and conclusions of the final conference
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.