Europe Remains in Dire Economic Straits

Photo of Trey Thoelcke
By Trey Thoelcke Published

GermanyEurope remains in deep economic trouble, judging by the Markit Eurozone PMI reading. Other data on unemployment and GDP is only confirms this information:

The Markit Eurozone PMI Composite Output Index rose to 46.5 in November, up from October’s 40-month low of 45.7 and above the earlier flash estimate of 45.8. The headline index has now remained below the neutral 50.0 mark for ten consecutive months and, although the latest reading was the highest since July, it was nonetheless indicative of a solid contraction in overall private sector output.

The average reading so far in Q4 is the weakest since the second quarter of 2009. Downturns continued in both the manufacturing and service sectors in November. However, rates of contraction slowed to seven- and three-month lows respectively. Both sectors were affected by weak demand from domestic and export markets. Ireland was the only nation to report an increase in business activity during November, with the rate of expansion broadly unchanged on October’s 20- month peak. In contrast, France, Italy and Spain remained in deep contraction territory, despite rates of decline moderating in France and Spain. The downturn in Germany also eased, with output continuing to decline at a considerably weaker rate than in other large nations.

The information from the report that should cause deepest concern is the extent to which France has joined Italy and Spain as an economy that is slipping.

Douglas A. McIntyre

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

KMX Vol: 7,330,419
GLW Vol: 22,800,969
INTC Vol: 233,719,006
SMCI Vol: 68,465,534
ENPH Vol: 13,978,376

Top Losing Stocks

ACN Vol: 41,744,333
EPAM Vol: 5,636,587
CTSH Vol: 61,311,400
CTRA Vol: 73,319,495
KR Vol: 26,704,230