Industry and service providers in the Eurozone’s largest economy have surprised with negative figures. The chief economist of a financial services provider has clear words after the monthly survey.
There is another dampener on sentiment for the German economy. In the largest economy in the Eurozone, the purchasing managers’ index for industrial companies and the service sector calculated by S&P Global has surprisingly fallen further.
It fell to 48.7 points, falling below the growth threshold of 50 points for the first time in four months, according to financial services provider S&P in London. The value for industrial companies fell to its lowest level in nine months.
“This looks like a serious problem,” said Cyrus de la Rubia, chief economist at S&P partner Hamburg Commercial Bank, commenting on the figures from the monthly survey. “The German economy has fallen back into the contraction zone.”
The economy in the Eurozone has also suffered another setback. In July, the mood among companies deteriorated again, reaching its lowest level in five months. The purchasing managers’ index fell by 0.8 points to 50.1 points. Analysts, on average, had expected the index value to stagnate at 50.9 points. The sentiment indicator is now only just above the growth threshold of 50 points, which continues to point to a slight expansion in economic activity.
Source: Stern
