Monday, January 2, 2012

Recession continues in Europe as economy contracts for 5th straight month

GDP growth in European countries contracted for the 5th straight month, solidifying the fact that the Western economies are in recession, and have little expectation of coming out of it anytime soon.

Or as Clubber Lang (Mr. T.) predicts for the Eurozone...

Following today's release of European manufacturing PMI data we are sadly no closer to getting any resolution on which way the great US-European divergence will compress. Because all we learned is that, very much as expected, Europe managed to contract for a fifth month in a row, with the average PMI in Q4 2011 the weakest since Q2 2009, essentially guaranteeing a sharp recession once the manufacturing slow down spills over to GDP. The only silver lining was that the contraction across the continent was modesty better than expected, however if this merely means that the band aid is being pull off slowly and painfully instead of tearing it off is up for question.
The released December manufacturing PMIs were as follows:
  • Italy: 44.3 vs 44.0 previously, exp. 43.8
  • France: 48.8 vs 47.3 previously, exp. 48.7
  • Germany: 48.4 vs 47.9 previously, exp. 48.1
  • Greece: 42.0 vs 40.9, nobody cared about expectations as the economy is total freefall
-          Zerohedge


Post a Comment