The crisis in the Eurozone continues, and indeed worsens, which at the beginning of the fourth quarter sees the drop in production of the companies of the major economies. It is to report it the Markit Economics center which sees its PMI (Purchasing managers index) drop to 45,7 points from 46,1 in September, registering a value slightly lower than the 45,8 points of the preliminary estimate. The data is, therefore, widely below the fateful threshold of 50 pointsdividing line between growth and contraction of activity.
In the calculation, the drop, the eighth consecutive, of the manufacturing sector, which pays for a substantial reduction in orders, weighs heavily. The relative index, published last week, went from 46,1 points in September to the current 45,4. A decline that involves all the countries of the Eurozone, with the exception of Ireland. The decline in services was slighter, to 46 points from 46,1.
As far as Italy is concerned, the situation of services is improving, which however started from a figure that was significantly lower than the European average. LThe tertiary sector index went from 44,5 points in September to 46, the least weak value for 14 months now. After the record levels of September, the contraction of orders and employment slows down.
Phil Smith, economist at Markit, forecasts that “the recession in Italy will continue during the fourth quarter, but – he adds – the main index is clearly moving in the right direction, despite the difficulties”. Again according to Markit, the drop in the PMI index would correspond to a 0,5% drop in the euro area's GDP between the second and third quarters.
