Eurozone Manufacturing Contracts
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The global recession is picking up steam. The US is in contraction, U.K. Manufacturing Is In Contraction, and now Euro zone manufacturing activity is in contraction.
The euro zone's purchasing managers' index (PMI) for the manufacturing sector, compiled by data and research group Markit, slid to 49.2 points in June, from 50.6 in May, up slightly from an initial estimate of 49.1.Reasons To Be Cautious
Analysts said that the weakness in manufacturing activity in June was widespread across the euro zone. German activity slowed to its second-lowest level since September 2005, although it remained well in expansion territory.
However, the PMI pointed to contracting activity in Ireland, France, Italy, Spain and Austria. Activity was particularly weak in Spain and Ireland, adding to the deepening gloom on these economies, they added.
Contraction in the U.S., U.K., Ireland, France, Italy, Spain and Austria should be enough to make anyone cautious.
But in case you need still more reasons, Professor Bennet Sedacca offers an additional 25 Reasons To Remain Cautious. It's a good set of reasons and tough to condense. Inquiring minds will want to take a look.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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