Flash Eurozone PMI Falls To Lowest Since July 2009

While the Chinese flash manufacturing PMI turns out to be a very decent number, the slowdown in Europe is gathering pace.  The flash Eurozone manufacturing PMI falls from 48.5 to 47.3, and the Services PMI falls from 48.8 to 47.2.  Both are now at the lowest level since July 2009.  The composite output index falls from 49.1 to 47.2, also lowest since July 2009.  Both Germany’s and France’s manufacturing PMIs are below 50, with Germany’s falling from 50.3 to 48.9, and France’s rising from 48.2 to 49.0.  While Germany’s Services PMI is a nice surprise at 52.1, France’s Services PMI falls from 51.2 to 46.

Although there was some curious optimism about the Euro crisis after the weekend non-event, the reality is that the slower the growth, the harder the debt crisis will get resolved, and this is probably what’s happening right now, and government austerity is actually making matters worse.

And as you can see from the follow chart from Markit, the Eurozone PMI tracks pretty well with GDP growth. 

Source: Markit

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.