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Purchasing Managers Index: Europe: Difference between revisions
Purchasing Managers Index: Europe (view source)
Revision as of 15:47, 5 September 2023
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=== August 2023 === | === August 2023 === | ||
Output in the eurozone economy declined at the fastest rate in nearly three years in August, latest HCOB PMI® survey data compiled by S&P Global showed. The overall retreat in activity was the fastest since November 2020, and broad-based across the manufacturing and services sectors as the latter contracted for the first time in 2023 so far. New orders also dropped the most since late-2020, leading to companies completing outstanding work at the fastest rate in over three years. This resulted in one of the softest 12-month outlook in 2023 so far and a near-stalling of jobs growth | Output in the eurozone economy declined at the fastest rate in nearly three years in August, latest HCOB PMI® survey data compiled by S&P Global showed. The overall retreat in activity was the fastest since November 2020, and broad-based across the manufacturing and services sectors as the latter contracted for the first time in 2023 so far. New orders also dropped the most since late-2020, leading to companies completing outstanding work at the fastest rate in over three years. This resulted in one of the softest 12-month outlook in 2023 so far and a near-stalling of jobs growth.<ref>https://www.pmi.spglobal.com/Public/Home/PressRelease/382c7872528a4f48bf03911ae648e7f1</ref> | ||
“The eurozone didn't slip into recession in the first part of the year, but the second half will present a greater challenge. For, the once stabilizing services sector turned into a drag for the economy while manufacturing has not bottomed out yet, most probably. The disappointing numbers contributed to a downward revision of our GDP nowcast which stands now at -0.1% for the third quarter. “Input price increases surprisingly picked up putting the perspective of rapidly decreasing inflation into question. The prime suspect is likely the wage hikes, which are not necessarily in sync with the business cycle, given their often longer term nature. “Employers weren't too keen on beefing up their teams. The way things have been going down lately, it's a sign they'll be moving towards job cuts sooner, not later. Still, the decline in unfinished tasks and new orders doesn't seem severe enough at this point to trigger aggressive cuts." | “The eurozone didn't slip into recession in the first part of the year, but the second half will present a greater challenge. For, the once stabilizing services sector turned into a drag for the economy while manufacturing has not bottomed out yet, most probably. The disappointing numbers contributed to a downward revision of our GDP nowcast which stands now at -0.1% for the third quarter. “Input price increases surprisingly picked up putting the perspective of rapidly decreasing inflation into question. The prime suspect is likely the wage hikes, which are not necessarily in sync with the business cycle, given their often longer term nature. “Employers weren't too keen on beefing up their teams. The way things have been going down lately, it's a sign they'll be moving towards job cuts sooner, not later. Still, the decline in unfinished tasks and new orders doesn't seem severe enough at this point to trigger aggressive cuts." | ||