The eurozone economy may have posted its second successive quarter of contraction, leading to the possibility that the continent is entering a second recession. The Markit Eurozone Composite PMI Index fell to 49.3 in February, down from 50.4 in January, below an earlier estimate of 49.7.
According to Markit’s chief economist:
With business activity falling again in February, and to a slightly greater extent than the earlier flash PMI signalled, it remains a close call as to whether the Eurozone contracted for a second successive quarter, sending the region back into recession.
The drops in Spain and Italy are particularly worrisome:
… ongoing steep declines signalled by the weak surveys for Italy and Spain suggest that a return to growth for these countries still looks to be a long way off. Companies there are still slashing employment and cutting prices to help stay in business. Persistent weakness in countries such as Italy and Spain will also subdue any growth in other euro area countries which traditionally depend on trade within the region, constraining recoveries in Germany, France and other northern euro nations.
The Markit press release is available here.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
