Eurozone slows with Germany
For France recession risk

The SME in the euro zone declines in October and drops from 49.1 in September to 47.2. Instead, the market expected a decline to 48.8 points. The index calculated on the purchase managers’ forecast measures industrial production, inflationary pressures and manufacturing activities: the equilibrium level is set at 50. The deterioration highlights the second consecutive month of contraction of the private sector economy. This is the fastest rate since July 2009.

Manufacturing production has fallen for the third consecutive month and tertiary activities have decreased for the second month and, in both cases, there has been a greater acceleration of contraction rates since the middle of 2009. Germany slows, the first economy of the ‘Eurozone. Manufacturing SMEs fell from 50.3 to 48.9 (after a forecast at 50). On the other hand, services rose from 49.7 to 52.1 points (49.9 points the forecast). In October, the French economy entered a recession: the indicator collapsed to the lowest levels in the last nine months at 46 points from 51.5 in September.
(24 October 2011)