Eurozone economy continues to move towards recession
Despite a slight improvement, the economy in the eurozone is still heading towards recession according to a survey. The Purchasing Managers' Index for the private sector - industry and the service sector combined - rose by 0.6 points to 47.1 points in November, according to a survey of more than 4,000 companies conducted by the financial services provider S&P Global on Thursday. Economists surveyed by the Reuters news agency had only expected 46.9 points. The barometer only indicates growth above the threshold of 50 points, signaling that the economy remains in recessionary territory.
According to S&P Global, this is primarily due to the lack of new orders. However, the sixth consecutive drop in orders was less severe than in the previous four months. By contrast, new export business, including trade within the eurozone, fell significantly once again: "One has the impression that the eurozone economy is sinking deeper and deeper into the mud," said chief economist Cyrus de la Rubia from Hamburg Commercial Bank (HCOB) - the sponsor of the survey. "In the last four to five months, both the manufacturing industry and the service sector have contracted at a comparatively steady pace."
The economic slowdown is now also reaching the service sector. Employment growth has almost come to a standstill here. "Assuming that the downward trend continues, the unemployment rate is likely to rise in the coming months. The labor market has proven to be very resilient so far," said the HCOB chief economist.
Source: www.ntv.de
