Monday October 20, 2014 Search
Weather | Athens
24o C
16o 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)  
Greek toy retailer Jumbo lifts Q1 sales 11 percent
Greece must stick to reforms, says Schaeuble
European leaders pivot back to debt crisis after wake-up call
Hardouvelis does not see ´big surprises´ in ECB stress tests
Turkish vessel enters Cypriot Exclusive Economic Zone
A Turkish research vessel entered Greece’s Exclusive Economic Zone (EEZ) on Monday morning, according to the government in Nicosia. The Barbaros, accompanied by two support vessels, entered ...
Samaras to visit Cyprus on November 7, ahead of Egypt talks
Prime Minister Antonis Samaras is to make an official visit to Cyprus on November 7, it has been announced. According to Cypriot government spokesman Nicos Christodoulides, the meeting is ta...
Inside News
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
SOCCER
OFI stuns Panathinaikos, Mitroglou hits twice
OFI Crete produced the upset of the week in Greek soccer beating Panathinaikos in Athens for only the second time in its history on Sunday, while PAOK stayed on top beating Atromitos at home...
Inside Sports
Greece’s closed society is central to its current malaise
I started writing my book “The Thirteenth Labour of Hercules” a couple of months after the June 2012 elections in Greece. In that nail-biting showdown, a bruised and battered electorate narr...
COMMENTARY
Between West and East
The crisis that has been buffeting Greece in recent years has perforce turned the focus of domestic politics to developments in Europe. The nation’s attention, thoughts, relationship-buildin...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek toy retailer Jumbo lifts Q1 sales 11 percent
2. Turkish vessel enters Cypriot Exclusive Economic Zone
3. Samaras to visit Cyprus on November 7, ahead of Egypt talks
4. Greece must stick to reforms, says Schaeuble
5. European leaders pivot back to debt crisis after wake-up call
6. Bakers encircle Thessaloniki´s White Tower with giant ´koulouri´
more news
Today
This Week
1. Hardouvelis does not see 'big surprises' in ECB stress tests
2. European leaders pivot back to debt crisis after wake-up call
3. Bakers encircle Thessaloniki's White Tower with giant 'koulouri'
4. Greece must stick to reforms, says Schaeuble
5. Samaras to visit Cyprus on November 7, ahead of Egypt talks
6. Turkish vessel enters Cypriot Exclusive Economic Zone
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Less haste, more focus
3. Greece to contribute 1 mln towards Gaza reconstruction
4. Greece nearing bailout exit, says gov't spokesperson after IMF talks
5. Istanbul skyscraper casts shadow over Greece's banking ambitions
6. Coalition shooting itself in the foot
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.