52879
Producer prices rose 0.1%  month-on-month in September.
Producer prices rose 0.1%  month-on-month in September.

Eurozone Economy Still Struggling

Eurozone Economy Still Struggling

Business activity in the eurozone during October was not as robust as first thought, a survey showed on Friday, adding to signs the bloc’s recovery remains on track but is struggling to gain momentum.
For the second month running, firms held prices steady despite costs rising at the steepest rate since July 2015, indicating companies’ pricing power remained muted and that the European Central Bank might have to do more to drive up inflation, Reuters reported.
Markit’s final composite Purchasing Managers’ Index for the eurozone was 53.3 in October, below a 53.7 flash estimate but beating September’s 52.6 and its highest since January.
The reading has been above the 50 mark that divides growth from contraction since mid-2013.
“The economy is ticking along but there is a lack of traction and that tells you the ECB’s best efforts to stimulate the economy haven’t worked yet,” said Peter Dixon at Commerzbank.
Markit said the PMI pointed to fourth quarter economic growth of 0.3%, in line with the prediction in a Reuters poll.
A stable but lackluster economic outlook will push the ECB to tweak its asset purchase program and announce by year-end an extension to it beyond March 2017, a Reuters poll found last month.
Years of ultra-loose monetary policy has so far failed to get inflation anywhere near the central bank’s 2% target ceiling but the PMI showed input prices rose sharply, largely driven by higher staff costs and oil prices.
The input prices sub index was 54.2, up from 53.5. Inflation was just 0.5% in October, the European Union’s statistics office said last week, while the figure used by the ECB as core inflation dipped to 0.7% from 0.8%.
Producer prices rose 0.1% month-on-month in September, official figures showed earlier on Friday.
Although costs were rising, firms in the bloc’s dominant service industry returned to discounting to drum up trade after holding prices steady last month. The output prices sub index for the sector was 49.7, down from September’s 50.0 and the flash 50.3 estimate.
Those price cuts helped drive activity up from the previous month and the services PMI registered 52.8, above September’s 52.2 but below the 53.5 preliminary reading.

 

Short URL : https://goo.gl/FLV5JV
  1. https://goo.gl/cscI47
  • https://goo.gl/xxPddl
  • https://goo.gl/sT6oDc
  • https://goo.gl/eTqWFp
  • https://goo.gl/zepu0j

You can also read ...

While China tries to alleviate its demographic crunch, the aging society means a pension shortfall.
Forget that image of sweatshops making all kinds of cheap...
Russia Economic Recovery Underway
Retail sales in Russia picked up in April, while real wages...
In 2017 banks had total mortgage lending of around $352 billion.
High levels of household debt are the greatest risk to Sweden’...
Saudi Gov’t Told Not to Boost Spending
The International Monetary Fund urged the Saudi government not...
Greece at Crucial Point
Discussions are heating up over future debt repayments for...
Brazil CB Keeps Rates on Hold
Brazil’s central bank considered cutting interest rates last...
Peru Economy Strengthens
Economic growth in Peru strengthened in the first quarter...
EU Tells Italy to Cut Debt, Warns of Euro Spillover
Italy’s incoming government should aim to cut its heavy public...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus