Euro-zone factory activity fell at its steepest rate in more than three years in July, and export orders plunged despite a weakening euro, suggesting the economy will struggle to recover from its downturn any time soon.
German manufacturers suffered the largest fall in new export orders of any euro-zone country, giving one of the starkest signs yet that Europe’s powerhouse economy—which is highly geared toward exports—is now flagging.
Markit Economics said Wednesday its monthly index of manufacturing activity in the 17-nation euro zone fell to 44 from 45.1 in June, dropping further below the 50 threshold that would signal growth to mark its worst reading since June 2009. July’s figure was lowered from a preliminary estimate of 44.1.
via WSJ
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