London: Eurozone’s economy is growing, but its growth rate is slowing down as the demand for goods is decreasing. New services or jobs have also come to a standstill and now the possibility of getting out of Eurozone has also weakened.
S&P Global Watch Eurozone Composite PMI Index results show that Eurozone’s purchasing manager index (PMI) has fallen from 50.9 points to 50.4, ie close to 50 marks. This simply means that the purchasing power of the people has reduced.
Products produced in large industrial complexes or small industrial complexes eventually reach consumers. Now if the purchasing power of the consumer becomes 50 percent (points) instead of 100 percent, then it can be called a direct sign of recession.
Cyrus de la Rubia, chief economist of Hamburg Commercial Bank, said that this situation is also present in the service sector. It is natural that it will also affect jobs. Therefore, it can be said that the economic speed of the Eurozone is almost stable.
He said that services were 51.0 in March. This has come down to 50.1. Which is the lowest figure in the last five months. Meanwhile, the optimism of service companies is also fading. They are worried about how to get out of this situation. Trade expectation has fallen from 57.8 to 55.1. The index has not been seen so down before the end of 2022.
In fact, the overall demand has been decreasing for 11 consecutive months. Although there was a slight improvement in April compared to March, the new trade index has fallen from 49.5 to 49.1. The real problem in front of the businessman and industrial class is that their outstanding orders have been declining for 25 consecutive months.
However, despite a slight increase in jobs in the service sector, manufacturing companies have been recruiting continuously for 23 months.
Eurozone has some good sides. Like PMI of Ireland. It has increased by 54 points. But this is the lowest in the last two months. Spain and Italy recorded an increase of 52.5 and 52.1 respectively. Which is the highest in the last 11 months. But their economies are not very big.
Europe’s largest economy in Germany remains stable at 50.1. Whereas in Europe’s second largest economy, it has fallen to 47.8 points in France. Some observers are describing this condition of Eurozone as a sign of recession.
