Economy

The European economy is deteriorating faster than expected. Production activity is slowing down, especially in Germany

The economic prospects for the eurozone have worsened. The Pmi . indicators (PMI, i.e. the set of guidelines for purchasing managers of companies) that monitors economic activity reported today Lower than expected. In October, the S&P manufacturing PMI fell from 48.4 to 47.9, Well below 50 which marks a turning point between expansion and contraction in the economy. The index related to services decreased from 48.8 to 48.2. The overall result is the composite PMI, which fell from 48.1 to 47.6. data indicate Intensification of the negative phase of the German economy At the start of the fourth quarter, “reinforcing the signs of an impending recession in the main eurozone economy,” according to an economist at S&P Global. Phil Smith.

especially The German index fell At 45.7 points, well below the expected 47 points. The services index, as expected, was at 44.9, but the general PMI of economic activity registered a sharp contraction to 44.1 from 45.7 in September, against expectations of a smaller slowdown to 45.5. yesterday Alfred Kamer, The head of Europe from the International Monetary Fund warned that in the winter months half of the euro countries would find themselves in a technical recession (ie, with GDP falling for two consecutive quarters). Italian GDP estimates are +3.2% in 2022, -0.2% in 2023 and + 1.3% in 2024.

However, pessimism does not plague the CEOs of the 1,300 of the world’s largest companies interviewed by the consulting firm Kpmg. More than 4 out of 5 globally (86%) expect a recession to arrive, But 58% expect this to be light and short. 73% of CEOs expect a recession to disrupt projected growth for their organization, but three-quarters (76%) have already taken precautionary measures in light of the looming recession.

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