Eurozone Manufacturing Falls Despite Weaker Euro

August 1, 2012 Share Print 0

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 economyâ€”which is highly geared toward exportsâ€”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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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.