Germany’s Purchasing Managers’ Index (PMI) faltered in April, as the nation could not escape the troubles across the European Union that have done more damage than can be measured by this sort of statistic. Clearly there is not enough demand for German products in places like the United States and China to offset the pull of gravity in Europe. If Germany faltered, based on PMI, then the rest of the region is still crumbling.
According to Markit data for the eurozone:
The Markit Eurozone PMI Composite Output Index was unchanged on March’s reading of 46.5 in April, according to the flash estimate. The sub-50 reading indicated a drop in activity for the nineteenth time in the past 20 months, the exception being a marginal increase in January 2012.
Divergent trends were evident in the region’s two largest member states. While France saw the rates of decline in both business activity and new business ease sharply to the slowest for four and eight months respectively, Germany saw both activity and new business fall at the steepest rates for six months. The drop in German activity was also notable in being the first since last November. Elsewhere across the region output fell at the slowest rate for three months in April, though the rate of loss of new business remained marked.