The free fall of the Eurozone continues. According to the latest Eurostat data, in September industrial orders in the EU17 recorded the worst fall since December 2008: -6,4%. A decidedly worse result than expected, considering that analysts had forecast a drop of 2,5%. On an annual basis, however, orders grew by 1,6%.
Negative signals also come fromeconomic activity of the private sector, which improves in November compared to the previous month but still remains in contraction. L'PMI composite index went from 46,5 to 47,2 points, thus remaining below the critical threshold of 50 points, which marks the boundary between expansion and recession. Manufacturing worsened, down to 46,4 from 47,1 points, while services improved, from 46,4 to 47,8.
These indications signal a possible contraction of 0,6% of the European economy in the fourth quarter, due to the expected slowdown in France, estimated at around 0,5%, and the possible stagnation of the German economy. Germany's PMI was virtually unchanged at 50,3 points, but the manufacturing sector recorded a contraction in activity. The same happened for the PMI of France, at 48,7 points.
