Eurozone stalling as German gloom bites: Survey exposes slowdown in currency bloc  | This is Money

0
44

The eurozone economy has almost ground to a halt after being hit by a downturn in Germany’s vital manufacturing sector.

Business conditions in German factories fell to their worst level in a decade in September, according to a survey of executives produced by data analysts IHS Markit.

This raises the risk that Germany, the largest national economy in Europe, will slump into a recession at the end of September. 

Business conditions in German factories fell to their worst level in a decade in September, according to a survey of executives produced by data analysts IHS Markit

The eurozone economy as a whole only just managed to stay in growth territory in September, as the reading on IHS’s Purchasing Managers’ Index (PMI) fell to 50.4. 

Anything above 50 indicates the economy is growing, but this was the lowest reading for the eurozone since 2013.

While manufacturing figures were dismal, the eurozone’s services sector also grew at the slowest rate since December 2014, excluding data from the beginning of the year when the ‘yellow-vest’ protests in France disrupted business activity.

This is in contrast to the UK economy, which exceeded experts’ expectations in July when official data showed it growing by 0.3 per cent.

Commenting on the report, Phil Smith, principal economist at IHS Markit, said: ‘The manufacturing numbers are simply awful.’

TOP DIY INVESTING PLATFORMS

Eurozone stalling as German gloom bites: Survey exposes slowdown in currency bloc 

Comments 4

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

Add your comment



What’s This?

By posting your comment you agree to our house rules.

We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook.

You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.