Brake application for manufacturing activity in Europe

Growth in manufacturing output slowed in June in Europe, the euro zone even dropped below four months, further indication of lack of breath from the economic recovery in the region.

The final results of the survey conducted among Markit purchasing managers, the PMI manufacturing sector in the euro area stood at 55.6 in June, a level consistent with the flash estimate and slightly below the 55 , 8 May.

Economists do not take the alarm to prevent a risk of sudden halt to growth in Europe, but it seems clear that economic activity has probably reached its maximum rate during the quarter just s' complete and that interest rates should be maintained at low levels until next year.

"In many Western countries, we will see the pace of economic growth slowed in the second half of the year.This is the path that one takes, "said Mark Miller, economist at Lloyds TSB Corporate Markets in London.

"In continental Europe, exports remain an engine of economic growth but I do not know how long this can continue."

In France, growth in manufacturing activity slowed for the second consecutive month the sector has continued to destroy jobs.By dipping to 55.8 in June, the PMI Markit / FASC has reached its lowest level since December 2009.

Similarly, the UK manufacturing activity slowed to its lowest level in 10 months when she had reached a high of 15 in May

In contrast, activity in Germany has kept pace in June than in May, with an index that has emerged even slightly higher than the first estimate published two weeks ago.

The slowdown in manufacturing activity is not unique to Europe and key emerging countries as well as India and especially China are also involved.

While economists do not expect a recurrence of the global economy into recession, some warn that most developed countries could face a protracted period of sluggish growth.

July 1st, 2010 in business success, calculation, facts, marketing, plans | tags: , , , ,