Posted by WARREN MOSLER on 1st July 2011
Broad-based slowdown in Eurozone manufacturing as growth hits 18-month low
(Markit) The final Markit Eurozone Manufacturing PMI fell to a one-and-a-half year low of 52.0 in June, down from 54.6 in May and unchanged from the earlier flash estimate. Incoming new orders fell for the first time since July 2009. Weakening domestic markets – especially at the periphery – was a major factor underlying lower order book inflows. June saw new export orders increase at the slowest pace since September 2009, led down by a decrease at intermediate goods producers. Production continued to rise at a robust pace in the investment goods sector in June, but lower output was seen at consumer and intermediate goods producers. Meanwhile, new order inflows stagnated at consumer and investment goods companies, and dropped at the steepest rate in over two years at intermediate goods producers.
This is not good. The hope is it reverses with lower crude and recovery in Japan.
Risks include China weakening, US austerity, and further austerity induced weakening in Europe.