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...unlike Europe which seems set for recession
from Tuesday 25 July 2023
by cityam
JACK BARNETT
NEW DATA on the health of Europe’s economies suggested the continent is heading towards a recession.
A snapshot of the eurozone’s respective economies showed high inflation and the European Central Bank’s (ECB) efforts to tame it with interest rate rises are cooling activity. Hamburg Commercial Bank and S&P Global’s flash composite purchasing managers’ index (PMI) for the 20 members using the euro slipped to 48.9 in July, down from 49.9 in June.
A huge contraction in eurozone factory activity dragged overall growth into negative territory in the bloc. Manufacturing output fell to 42.7, its weakest level in 38 months and down from 43.4.
Germany –which had for decades relied on cheap Russian gas to propel its crucial industrial sector – has suffered a sharp fall in manufacturing output. The country’s factory PMI slid to 38.8 in July from 40.6. Its composite measure slid into shrinkage at 48.3, though services remained just about resilient.
A reading above 50 in closely-watched indices of economic growth compiled by Hamburg Commercial Bank and S&P Global represents economic growth
