Things are going worse than expected for companies in the euro area. In June, the PMI index dropped by more than three points compared to the previous month, reaching 53,3, well below forecasts. This is the lowest pace of expansion for 20 months now. According to Chris Williamson, chief economist at the Markit Economics research center, this "yet another dip in momentum does not bode well for the third quarter". The divergences in national growth remain “worrisome. Of the four major eurozone nations, only Germany continued to post a PMI in line with strong quarterly GDP growth in June, although even here the pace slowed markedly. In the meantime, the SMEs show slight growth only in France and Spain, while in Italy there is a risk of a new fall into recession”.
In our country, the PMI index relating to the tertiary sector has fallen back into recessive territory: 47,4 points from 50,1 in May, according to the figures elaborated together with the Adaci, association of procurement managers. The 50-point threshold represents the boundary between expansion and contraction of activity. In recent days it had been reported that the component of the index relating to the manufacturing industry had also finished at recessive values, with 49,9 points in May. “The June survey concludes a negative quarter both for the tertiary sector and for the private sector in general – observes Andrew Self, another Markit economist, regarding the Italian data”.
Growth at the beginning of the year "seems to have slowed down - continues Self - and analysts will focus on the third largest nation in the eurozone, waiting for further signs of weakening, given that those who implement political and economic plans will have to deal with the crisis public debt in the eurozone. On a positive note, however, after months characterized by discounts, tertiary companies seem to have regained the decision-making power on prices and the pressure on operating costs seems to have abandoned the peaks reached in the past”.
