- MarketPulse - https://www.marketpulse.com -

German Business Activity Slows Down in April

Survey compiler Markit cautioned against taking the rise as a clear sign the region’s recession has bottomed out, pointing to a surprise decline in German companies that form the backbone of the euro zone economy.

“Previously, we’ve seen Germany expand while other countries have contracted – notably Spain, Italy and France,” said Chris Williamson, chief economist at Markit.

“Now it seems those contractions are being accompanied by a downturn in the largest economy, Germany, and that will no doubt act as a drag on growth.”

There was some respite for French companies, which in March endured their worst month since the depths of the deep recession in 2009, and that helped to support the latest wider euro zone PMI.

Williamson said officials at the European Central Bank, which meets next week to decide monetary policy, may be relieved to see the euro zone PMIs at least did not signal a further deterioration this month.

via Reuters [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
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.
Alfonso Esparza
Alfonso Esparza

Latest posts by Alfonso Esparza (see all [6])