- Oct 26, 2006
FT.com / Brussels / Economy - Eurozone recovery runs out of steamThe eurozones economic recovery is running out of steam, a closely watched survey of industry indicated on Thursday, with continuing growth in Germany and France concealing a contraction in output in the rest of the bloc for the first time in nearly a year.
The Markit purchasing managers index shows growth in economic output across the eurozone fell to a 12-month low in October. However, the 53.4 reading, down from 54.1 in September, remains above the 50-point line which separates economic growth from recession.
The PMI survey compiled by interviewing 4,000 companies in the manufacturing and services sectors across the eurozone is consistent with recent economic data which suggest a growing chasm between the core economies led by Germany and the lacklustre prospects of the peripheral economies dealing with large sovereign debt piles.
It also highlights the exposure of the eurozone economy to slower growth in other regions, notably the US, in part driven by the appreciating euro.
Not quite officially a double dip but downward spiralling. The EU is being propped by Germany and France at the moment who have shown strong growth while the rest of the EU declined. The problem is compounded by the appreciating Euro.
How long will they (Germans & French) tolerate us?