• A new DIY economy

    Reinventing society will be an opportunity to create a better future, says Ian Mann.

  • Healthcare headache

    State healthcare strategies must be more than political posturing, says Mzwandile Jacks.

  • Buzzwords and truths

    Mandi Smallhorne discusses her beef with the terms 'savings' and 'entrepreneurship'.

Loading...
See More

PMI: Eurozone business activity bleak

Sep 20 2012 11:51
AFP

Brussels - Private sector business activity in the eurozone showed an eighth monthly decline in September hitting its gloomiest patch in three years, survey results showed on Thursday.

The closely-watched Purchasing Managers Index (PMI), a survey of 5 000 eurozone businesses compiled by Markit research firm, came in at 45.9 points, down from 46.3 in July.

Any reading below 50 indicates contraction in activity.

Taken together with previous months the data suggested "the worst quarter for three years," Chris Williamson, Markit chief economist said in a statement.

He tipped a 0.6% contraction in gross domestic product for the quarter, which would confirm a return to recession.

"We had hoped that the news regarding the ECB's (European Central Bank) intervention to alleviate the debt crisis would have lifted business confidence, but instead sentiment appears to have taken a turn for the worse," Williamson said, referring to plans by the ECB to buy bonds issued by struggling eurozone governments.

He said the business outlook was "the most gloomy since early-2009," with the "gloom clearly reflected in head counts falling at the fastest rate since January 2010 as companies seek to adjust to weaker demand".

At the same time, the survey reported company costs rising - mainly energy price-driven - despite weak global demand bringing output prices down.

"Some good news came from an easing in the rate of contraction in Germany, though the rate of decline accelerated markedly in France," Williamson added of the detail.

He said Germany was seeing new orders dry up in both manufacturing and services sectors.

*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

european central bank

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About...

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Introducing tablets in schools is:

Previous results · Suggest a vote

Loading...