New data survey suggest that the euro-zone economy is shrinking!
Weak European business surveys released Wednesday provided fresh evidence that a much-anticipated euro-zone economic contraction is underway.
The closely-watched euro zone composite ‘Purchasing Managers Index’,which measures activity in both the manufacturing and services sectors—fell to 49.2 in August, marking an 18-month low.
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Eurozone PMI Data Point to Recession Risks!
Fresh data from suggest that the eurozone economy is shrinking!
— The_Journalbiz (@the_journalbiz) August 23, 2022
The data suggest the eurozone economy is shrinking at a rate of 0.5% to 1% during the current quarter, according to Pantheon Macroeconomics.
Pantheon expects a technical recession—or two consecutive quarters of shrinking GDP,by the end of the year.
But the reports weren’t all bad news, helping cushion European stock indexes from steeper declines. Business in Germany and France said they are seeing cost pressures ease, though it is unclear if the recent surge in natural-gas prices will reverse any inflation relief business reported.
- Business activity in Europe and Japan fell in August, according to new survey
Pointing to a sharp slowdown in global economic growth as higher prices weaken consumer demand and the war in Ukraine scrambles supply chains.
The second month of declining activity in Europe comes amid a renewed rise in energy prices over uncertainty about Russia’s willingness to maintain its already reduced supply of natural gas ahead of the heating season.
Russian state gas supplier Gazprom Friday said it would shut down the Nord Stream natural-gas pipeline to Germany for three days of maintenance later in August.
That sent gas prices on a fresh increase, spurred by worries over Europe’s ability to amass sufficient fuel supplies before winter