Eurozone PMI Drops to Near Recession Level
Markit’s Eurozone Purchasing Managers’ Index (PMI) dropped to near recession levels for September. It is another sign of how close Europe’s overall economy is to contraction and how perilous the global expansion is going into the end of 2019.
Markit reported, “Eurozone close to stalling in September as factory downturn deepens” as the headline for the monthly report.
Flash Eurozone PMI Composite Output Index
at 50.4 (51.9 in August). 75-month low.
▪ Flash Eurozone Services PMI Activity Index
at 52.0 (53.5 in August). 8-month low
▪ Flash Eurozone Manufacturing PMI Output
Index(4) at 46.0 (47.9 in August). 81-month low.
▪ Flash Eurozone Manufacturing PMI at 45.6
(47.0 in August). 83-month low.
Chris Williamson, Chief Business Economist at IHS Markit, said: “The eurozone economy is close to stalling as a deepening manufacturing downturn shows further signs of spreading to the services sector. The survey data indicate that GDP looks set to rise by just 0.1% in the third quarter, with momentum weakening as the quarter closed.”
Germany, the largest economy in the region posted a falling PMI for the first time since April 2013.
Several organizations, including the International Monetary Fund and Organisation for Economic Co-operation and Development, have warned the global economy will post very slow growth this year, followed by a similar pattern next year. With trouble in the Middle East and the U.S. trade war with China, 2020 may be a very trying year.