Canaccord Genuity Morning Coffee on Eurozone Market PMI: If You Thought U.S. ISM Data Was Bad, You Ain’t Seen Nothing Yet
Tweet Send to a Friend
Canaccord Genuity Morning Coffee on Eurozone Market PMI: If you thought the ISM data in the U.S was bad, you ain’t seen nothing yet.
It looks like we are now finally seeing the full wrath of the European debt crisis on global manufacturing. In particular, PMI numbers out of Europe were disastrous. As a whole the Eurozone Market PMI number came in unchanged at 45.1, however Germany and Spain’s manufacturing recorded the steepest drop in almost 3 years. New orders from abroad dropped at the second-fastest rate since May 2009 due to lower spending in Europe and a slowdown in Chinese demand, according to Markit. Also worrisome were the unemployed numbers which showed around 17.56 million people were out of work in the 17-nation euro zone in May, or 11.1% of the working population, a new high since euro area records began in 1995, the EU's statistics office Eurostat commented. The jobs component of the euro zone PMI showed manufacturers cut staff at the fastest rate in two and a half years in June. This and the PMI’s added weight to expectations that the European Central Bank will cut interest rates on Thursday to a record low of 0.75%.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
It looks like we are now finally seeing the full wrath of the European debt crisis on global manufacturing. In particular, PMI numbers out of Europe were disastrous. As a whole the Eurozone Market PMI number came in unchanged at 45.1, however Germany and Spain’s manufacturing recorded the steepest drop in almost 3 years. New orders from abroad dropped at the second-fastest rate since May 2009 due to lower spending in Europe and a slowdown in Chinese demand, according to Markit. Also worrisome were the unemployed numbers which showed around 17.56 million people were out of work in the 17-nation euro zone in May, or 11.1% of the working population, a new high since euro area records began in 1995, the EU's statistics office Eurostat commented. The jobs component of the euro zone PMI showed manufacturers cut staff at the fastest rate in two and a half years in June. This and the PMI’s added weight to expectations that the European Central Bank will cut interest rates on Thursday to a record low of 0.75%.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Michael Kors (KORS) Under-Appreciated; Canaccord Genuity Starts at Buy
- UBS Survey Shows Signs of Strength for Gilead's (GILD) TAF
- Expect Lower Guidance from NetApp (NTAP), But With Stock 'In Play' Downside is Limited - BMO Capital
Create E-mail Alert Related Categories
Analyst Comments, Economic DataRelated Entities
European Central Bank, Canaccord Genuity
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
