The Eurozone Disaster: Between Stagnation and Stagflation
The eurozone economy is more than weak. It is in deep contraction, and the data is staggering.
The eurozone manufacturing purchasing managers’ index (PMI), compiled by S&P Global, fell to a three-month low of 43.1 in October, the sixteenth consecutive month of contraction. However, European analysts tend to ignore the manufacturing decline using the excuse that the services sector is larger and stronger than expected, but it is not. The eurozone Composite PMI is also in deep contraction at 46.5, a thirty-five-month low, and the services sector plummeted to recession territory at 47.8, a thirty-two-month low.
Some analysts blame the energy crisis and the European Central Bank (ECB) rate hikes, but this makes no sense. The eurozone should be outperforming the United States and China because the energy crisis reverted almost immediately. Between May 2022 and June 2023, all commodities, including natural gas, oil, and coal, as well as wheat, slumped and fell to pre-Ukraine war levels. A mild winter and the impact of monetar
Article from Mises Wire
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