Wednesday, July 24, 2013

IS the european recession coming to the end?

According to a survey published on 24 July the European economy seems to be growing again

Is the European recession coming to the end?

24/07/2013 - 3:05pm
The possible end of the recession in the Eurozone seems to be closer to reach. The financial information company Markit published today their survey with promising results. Monthly purchasing managers' index (PMI) for the Eurozone has rised to 50.4 points in July from 48.7 the previous month. The increase reflected improvements in both the manufacturing and services sectors.
The PMI is an economic factor which reflects the economical growth depending on surveys from various private sector companies and it is based only on factual information. The Markit Eurozone PMI rose above the 50.0 in July for the first time since January 2012. „Today's PMI data corroborate our assessment that the eurozone economy is slowly moving from contraction to stabilization," said to Associated Press Tom Rogers, senior economic adviser at Ernst & Young.
The job losses also eased
Unemployment still remains one of the biggest problems of the Eurozone. „Employment continues to fall, but even on the jobs front there is welcome news in that companies are cutting back on headcounts to a lesser extent than earlier in the year,“ commented Chris Williamson, Chief Economist at Markit. In spite of, the survey shows that also the rate of job losses eased during the month, dropping to the lowest since March 2012.
The recession in the Eurozone has lasted from the end of the year 2011. Today`s PMI survey offers a hope to recession`s coming to the end. "In all, then, there are some signs that the eurozone economy is on the mend and might perhaps soon exit recession," Ben May, European economist at Capital Economics told Associated Press. "Nonetheless, the PMI and other business surveys have signaled several false dawns in the recent past," added May scepticaly.  “EUROPE ON LINE

No comments: