Europe’s economy expected to drop again

The economy on the continent is expected to crash, despite numerous policymakers’ attempts to bring it back to life

Latest data have revealed that business growth this month was the lowest of the last 16 months. The Markit’s Purchasing Manager’s Index (PMI), the economic health key barometer confirms the figures.

Service sectors in France and Germany struggle, while the overall economic growth across the bloc is considered to be uncertain.

As Europe is “stuck in a low-growth phase” and despite the efforts of European Central Bank (ECB) to develop a program of rate cuts and money printing in an attempt to save the economy on the continent, forecasts are not at all encouraging.

Chris Williamson, chief economist at Markit commented on the latest figures:

“The forward-looking indicators also suggest that growth is more likely to weaken further than accelerate.

“Inflows of new work showed the smallest rise for nearly a year-and-a-half, while optimism about the business outlook in the service sector sank to its lowest since July 2015.”

“The survey therefore paints a picture of a region stuck in a low-growth phase, managing to eke out frustratingly modest output and employment gains despite various ECB stimulus ‘bazookas’, a competitive exchange rate and households benefiting from falling prices.”