The slowdown in economic activity in Europe is confirmed. This Friday fell on the first results of the monthly surveys the IHS Markit survey of purchasing managers in the euro area. They indicate that the growth of the private activity was down in march to return to a rate of “very moderate”. The monthly index is displayed 51.3 points in march, compared with 51.9 in February. If the index is above 50, it means that activity is rising, while it decreases if it is lower than this threshold. The PMI “flash” manufacturing, to 47.6 points, is on his side fell to the lowest since April 2013.
The inflection is particularly striking for France. It is a bad surprise, even though the Insee has published this week’s forecasts are rather encouraging for the country and that the government does not cease to congratulate themselves, that the Hexagon is more resilient than its european neighbours to the global slowdown.
The index of the overall activity French, which had improved in February, has reached 48,7 points
The index of the overall activity French, which had improved in February, has reached 48,7 points. This level, the lowest in two months, “indicates a return to contraction” of the activity of the private sector. “The recovery that began in February was not extended at the end of the first quarter of 2019, the manufacturing industry and the services sector recording both a contraction of their business”, gave details of Eliot Kerr, an economist at IHS Markit.
The firm, economic analysis pointed to a general weakening of demand, the overall volume of new business was down both in services and in industry. According to IHS Markit, the contraction has reached its highest level for the past three years in terms of export sales.
