Eurozone Q4 Economic Contraction May Not Be A One Off: Capital Economics
Thursday, 23 February 2012 | 13:49
The latest purchasing managers' survey results have dampened hopes that the economic contraction in the Eurozone during the fourth quarter may prove to be a one off, Capital Economics European Economist Ben May said Wednesday.
Preliminary data from Markit Economics showed today that the Composite PMI dropped to 49.7 from 50.4 versus economists' expectations for a higher score of 50.6. A level below 50 indicates contraction in the private sector. The decline was entirely down to a drop in the services index.
The euro area PMI is much weaker than its U.S. and U.K. counterparts, May pointed out. "With concerns about a Greek default likely to rumble on for the foreseeable future and further austerity measures likely to be announced in parts of the region, we still expect Q4's contraction to mark the start of a sustained fall in euro-zone activity," the economist added.
Source: RTT News
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