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Eurozone private sector 'contracts sharply'



4 May 2012 Last updated at 10:10

The eurozone's private sector contracted sharply in April and by more than initially thought, a survey says.

The Markit eurozone composite purchasing managers' index (PMI) fell to 46.7 in April from March's 49.2. Any figure below 50 suggests contraction.

This is the sharpest fall since October last year, and one of the steepest contractions in almost three years.

"Marked declines in new business" and weak manufacturing exports were largely to blame for the falls, Markit said.

Markit said the figures suggested the eurozone economy as a whole contracted at a quarterly rate of 0.5% in April.

'Truly dire'

Italy saw output from its manufacturing and services sectors hit a three-year low, while Germany, Europe's economic powerhouse, slipped "towards stagnation".

New business contracted for the ninth straight month, while employment fell for fourth month in a row.

The eurozone's services sector PMI dropped to 46.9, down from 49.2 in March, a figure described by Howard Archer from IHS Global Insight as "truly dire".

Markit's chief economist Chris Williamson said business and consumer confidence "appears to have deteriorated markedly across the region since the upturn at the start of the year".

"The final PMI came in well below the [initial] estimate. The survey suggests that the economy was contracting at a quarterly rate of around 0.5% in April, extending the downturn into a third successive quarter," he said.

"Growth has practically ground to a halt in Germany and France has joined Italy and Spain in seeing a strong rate of economic decline."

http://www.bbc.co.uk/news/business-17952847


Added: May-6-2012 
By: gemini
In:
Regional News
Tags: economy
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  • The Euro will slide under the waves shortly, sadly they will continue to prolong the inevitable with more backdoor bailouts from the US taxpayers, which will drive the US into a crisis a little later. We are losing a war we aren't even aware of.

    Posted May-6-2012 By 

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    • @buttkracken Actually it's the austerity budgets all of the countries are passing. You cannot slash your way out of a recession. The US will follow if the conservatives get there way and get the Ryan budget passed.

      Posted May-6-2012 By 

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    • @cdlcrash Yes, austerity cuts help slow the economic system when what is needed is more spending. Austerity is something that needs to be built into government in its routine functions, not as an after thought during a crisis.
      The way things are now, austerity has become the government slashing benefits to the underclasses and transferring assets to banking system. If governments devolve into a tax collector for Banking system, what is they're point? The government just becomes a middleman.
      Last More..

      Posted May-6-2012 By 

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    • @cdlcrash Yes. More government, spending and debt is precisely what they need.
      Austerity only came about AFTER the European governments showed they weren't responsible enough to control their budget. Austerity is an effect, not a cause.
      The US is in the same exact boat. We need to cut spending now even if it means further weakening the economy to avoid the same fate as Europe. Because if we continue to spend the way we spend today the results will be deep austerity cuts like you see in Europe to More..

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    • @myCondolences It scares me when they talk about cutting off food stamps to poor people.
      Angry poor people on one side of me and Washington on the other side of me. Who do you think is going to be eaten first?

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    • @buttkracken Its not going to be easy. Cuts needs to be made everywhere. I say we start first with the politicians salaries. These fvckers dont deserve a penny.

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  • Compare to Europe, the US is doing very well.


    .

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