If there was any need for extra information that Europe is in recession, and there is not, new Market PMI data for November gave it. However, there is no plan among the members of the eurozone of how to reverse the process, and that will make it worse.
The agency said as the title of its Markit Flash Eurozone PMI:
Eurozone sees ongoing steep decline as services suffers worst month since mid-2009
The Markit Eurozone PMI Composite Output Index was little-changed in November according to the flash estimate, up fractionally from 45.7 in October to 45.8. October's reading had been the lowest since June 2009 and, for the fourth quarter of 2012 so far, PMI data suggest the strongest contraction of output since the second quarter of 2009.
Activity has now fallen in 14 of the last 15 months, with the exception being a marginal increase seen in January. Output fell sharply in both the manufacturing and service sectors and, while the former saw the rate of contraction ease slightly, the latter saw business activity fall at a rate not seen since July 2009. By country, the rates of decline in output eased in both France and Germany but remained substantial, notably in France. Elsewhere in the region, the average rate of decline reaccelerated, hitting the fastest pace since July.
Recent wars among the nations in the alliance about the values of stimulus versus austerity mean there will no single means to address the problem as smaller nations move into economic depression, France and Italy into recession, and Germany GDP barely hugs the flatline.
If U.S. policy makers and corporations hope a turnaround is Europe will come soon and bolster American economic activity, they are mistaken
Douglas A. McIntyre
Filed under: 24/7 Wall St. Wire, International Markets Tagged: featured