Manufacturing Expected to Remain in a Tough Spot in Europe
Skerdian Meta • 1 min read
The European economy is in a really difficult spot right now. The service sector is not as bad, although it has been weakening, but the manufacturing sector and industrial production are in deep contraction, especially in Germany and, as a result, in the Eurozone.
Today is a manufacturing day in Europe, with manufacturing reports to be released from a number of major European countries. Also, manufacturing reports from China and Japan were already released. In Japan manufacturing remained in contraction, while the Chinese Caixin manufacturing improved and climbed above stagnation, which is a positive sign for the global economy . Below is the list and expectations of European manufacturing figures:
|Spanish Manufacturing PMI||48.6||48.2|
|Swiss Manufacturing PMI||45.6||44.7|
|Italian Manufacturing PMI||48.6||48.5|
|French Manufacturing PMI||51.0||51.0|
|German Manufacturing PMI||43.6||43.6|
|Eurozone Manufacturing PMI||47.0||47.0|
|UK Manufacturing PMI||48.0||48.0|
As you can see, only French manufacturing is barely holding up above stagnation, while all other European manufacturing figures show that this sector is in contraction. Expectations for last month aren’t expected to show any change comparing to July. So, everything looks quite gloomy, although let’s hope it doesn’t get worse.
The Euro has been on slippery slope and EUR/USD even broke below 1.10 at the end of last week, so if numbers come as expected, it will confirm the weakness of the European economy and the Euro will remain bearish for the next few sessions.