The Eurozone has lost its steam in the recovery process late last month according to a survey by a private sector in which the zone’s activity slightly slowing down. The Markit composite purchasing managers’ index (PMI), which is charged to track several sectors slid down to 51.7 from 51.9 two months prior. However, the figure superseded expectations and the PMI reading stayed above 50 which signaled economic expansion.
In Germany, composite PMI was able to hit a 29-month high during which firms hired additional workers in order to meet the demands of new orders. In Spain, the service sector was able to return to its growth and the same saw its largest leap of new business opportunities in the past five years.
In the interim, other readings indicated that the French economy was at high risk of going back into a downturn with an all-sector reading of a 48 which is considered as a five-month low. Italy, likewise is not doing so well as it’s composite PMI reading of just 48.8 worsened with a marked decreased a month prior.
Analysts predicted that the Eurozone will still be able to show signs of a break as the economic vital signs pick up in core countries but slows down in other regions respectively. The final PMI data was able to confirm that the Eurozone recovery lost momentum which severely affected the economic foothold in the region.
It’s crystal clear that a concern was evident regarding the rate of growth remains to be frail. For the moment, retail sales in the zone declined 0.2 % two months prior after a decline of 0.6 % in the final months of the third quarter.
While the growth in the Eurozone was confirmed at a meagre 0.1 % last quarter, the slowdown further led to a 0.3 % in the past three months according to a survey by Eurostat. Finally, the Eurozone contracted a 0.4 % decrease compared to a similar period a year prior.