Germany leads slowdown in eurozone

Discussion in 'Wall St. News' started by ASusilovic, Sep 23, 2010.

  1. Eurozone growth is slowing markedly, with Germany leading the deceleration, according to a closely watched survey.

    A larger-than-feared slump in purchasing managers’ indices for the 16-country region indicated that the pace of expansion had tumbled in September, presaging a significantly weaker final few months of the year.

    The weak data added to evidence that gloomier global prospects, a strengthening euro, and the crises conditions facing the Greek and Irish economies are taking a toll on eurozone prospects. They did not point to a double-dip recession in continental Europe as a whole – but highlighted the vulnerability of countries still struggling to bring their public finances under control. “The turn in the world trade cycle has finally reached the eurozone,” said Nick Kounis, economist at ABN Amro in Amsterdam.

    The eurozone economy expanded rapidly in the second quarter of this year, when gross domestic product surged 1 per cent compared with the previous three months, and by 2.2 per cent in Germany. However, the composite purchasing managers’ index, covering manufacturing and service sectors and published on Thursday, fell from 56.2 in August to 53.8 in September – the lowest since February.