Saturday December 20, 2014 Search
Weather | Athens
17o C
10o 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)  
Workers rush to get early retirement
Piraeus Containter Terminal goes from strength to strength
Moscovici: Creditor inspections to become less frequent and ‘lighter’
Property capital gains tax halt
Environment Ministry to reconsider controversial bill
The government over the weekend appeared to backpedal on proposed amendments widely seen as compromising legislation protecting Greek forests as well as Plaka, Athens’s old quarter. The bill...
Corfu to host country’s first hydroplane strip
Merchant Marine Minister Miltiades Varvitsiotis and Deputy Infrastructure and Transport Minister Michalis Papadopoulos have signed a decision paving the way for the country’s first hydroplan...
Inside News
BASKETBALL
Explosive Barca unfazed by Panathinaikos, bomb scare
Panathinaikos lost 80-67 at home to Barcelona on Friday in a rather meaningless game at the end of the first group stage of the Euroleague, but the encounter will be remembered for the bomb ...
SOCCER
Abidal cuts short playing career at Olympiakos
Former France and Barcelona defender Eric Abidal announced his retirement from football on Friday, a day before his last match. Abidal said he will finish after playing for Olympiakos agains...
Inside Sports
COMMENTARY
The big picture
In his second term, US President Barack Obama is taking steps to enshrine his legacy and solidify America’s standing in the 21st century. His recent decision to normalize relations between t...
EDITORIAL
Get your facts straight
The danger that political discourse in Greece will sink to the basest levels of vulgarity is already more than apparent from the allegations we have heard bandied about over recent days. The...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Environment Ministry to reconsider controversial bill
2. Corfu to host country’s first hydroplane strip
3. Political upheaval sharpens after bribe claims with threats and insinuations
4. Police gets new communications system
5. Most Greeks say they recycle daily
6. Probe into revenues of 2 mln euros in Halkidiki municipality
more news
Today
This Week
1. The big picture
2. Get your facts straight
3. Probe into revenues of 2 mln euros in Halkidiki municipality
4. Corinth-Patra highway traffic to be diverted
5. Changes on E9 property declarations possible until end-year
6. Search under way for ‘mastermind’ of bank-scamming gang
Today
This Week
1. Juncker warns Greeks against voting 'extreme forces' into power
2. Romanos and the dilemma
3. Samaras summons bond vigilantes with euro exit talk
4. A friendly yet firm message from Pierre Moscovici
5. Europe's drama in Greece needs final act to avoid tragedy
6. High stakes
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.