The Eurozone economy is edging towards recession as business activity slows. The February shadow came from Italy and Spain. The Russian economy performed better last month, but is expected to be pressed by the Eurozone doom and gloom in the future.
February PMI data – an indicator of business activity – pointed to a drop in the Eurozone economies, causing fears of a continued recession. “A drop in services activity offset a marginal rise in manufacturing production,” the Eurozone PMI report explained.
The PMI Composite output Index for the Eurozone entered negative territory crossing the dividing line between growth and decline. It stood at 49.3 in February, which is a fall from 50.4 in January.
“At this stage, our best estimate is that the region’s GDP will have contracted by 0.1% in the first three months of the year,” commented Chris Williamson, Chief Economist at Markit.
The Eurozone Composite output Index compiled by Markit tracks manufacturing and services at 4,500 companies in the area to provide for a general understanding of the economic environment.
A PMI reading above 50 points to growth, with below 50 pointing to economic contraction. Read the rest of this entry →