Eurozone Manufacturing Sinks to 2-Year Low

The latest Markit Manufacturing Production Manager’s Index (PMI) indicates that manufacturing in the Eurozone countries fell more than expected to a 2-year low of 49 with any reading under 50 indicating contraction. The previous month’s index reading was 50.4.

Not surprisingly, Germany had the strongest individual reading at 50.9 while Greece recorded the weakest result at 43.3. Manufacturing activity in France, Italy, and Spain also declined during the month.

“Final PMI data for August were even worse than the earlier disappointing flash numbers, signalling an end to the manufacturing recovery which began in 2009,” said Chris Williamson, chief economist at Markit.

“Worryingly, Germany saw new export orders fall at the fastest rate of all countries surveyed, meaning the eurozone can no longer rely on export-led growth in its largest member state to help sustain even a lacklustre recovery for the region as a whole.”

Source: BBC News

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