Survey: Eurozone Suffers Worst PMI Downturn in Three Years

June 5, 2012
The full Purchasing Managers Index compiled by the London-based research firm Markit fell to 46 points in May, down from 46.7 in April, in what amounted to the fastest rate of decline since June 2009.

Eurozone private-sector activity in May suffered its worst monthly slide in nearly three years, a survey showed Tuesday, with "alarmingly steep" declines in Spain, Italy and now also France.

The full Purchasing Managers Index compiled by the London-based research firm Markit fell to 46 points in May, down from 46.7 in April, in what amounted to the fastest rate of decline since June 2009.

Any score below 50 indicates economic contraction, with the latest reading of the closely watched survey of buying activity showing recession in the debt-laden eurozone periphery clearly now eating into the core.

The final score was a shade better than the first estimate of 45.9 points, but the results showed that German output fell for the first time since November and that downturns in France and Spain accelerated, with Italy firmly mired in a steep downturn.

France posted a 37-month low of 44.6 points, with Spain languishing on 41.2 points. Italy's score rose, but only to 43.5 points.

"Companies report business activity to have been hit by heightened political and economic uncertainty, which has exacerbated already weak demand," said Markit chief economist Chris Williamson.

"While Germany is contracting only marginally, alarmingly steep downturns are evident in Spain, Italy and now also France."

London-based IHS Global Insight analyst Howard Archer said the "dismal" data "intensifies the pressure on the European Central Bank to cut interest rates further, and sooner rather than later."

Copyright Agence France-Presse, 2012

Popular Sponsored Recommendations

What Is Your Smart Factory IQ?

Sept. 24, 2023
It’s time to put Smart, data-driven manufacturing operations to the test. In this comprehensive whitepaper we show you how to determine the Artificial Intelligence Quotient (AIQ...

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

Powering Up Productivity: The Transformative Power of AP Automation in Manufacturing

Oct. 25, 2023
Discover how AP Automation is revolutionizing the manufacturing industry, driving efficiency, cost savings, and security. In today's world, automation is the key to staying competitive...

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!