The recovery of the Euro zone economy is heavily dependent on incentives provided by the European Central Bank, said today the chairman of the bank, Mario Draghi.
These comments suggest that the bank may decide to increase the “quantitative easing” – ie bond purchases Bank , at the next meeting in December.
Euro zone final data PMI services for October stood at 52.8 points, compared with a forecast of 53.5 points.
The credit rating agency Moody’s said that if Britain will not be able to get a good enough deal of the exit from the EU, it will have to cope with the downgrading of the rating.
The production index of purchasing managers in the Euro zone in October recorded the fastest growth in three years – 53.5 and beat the earlier forecasts.
Disappointing growth in the Euro zone’s private sector
The growth of the private sector in the Euro zone slowed in September.
The PMI survey showed 52.2 points compared with 52.8 in August.
This is the slowest growth since December 2014.
According to the survey, the growth rate in France recovered, but slowed in Germany, Ireland and Spain.
The trading on Wall Street stock exchanges ended yesterday with declines after a volatile trading day, following a report according to which the European Central Bank (ECB) may reduce the quantitative easing program (QE) in the Euro zone ahead of schedule.
The IMF cuts its forecast for US economic growth in the current year and to -2017.
More unflattering data for the Euro zone economy was published:
The composite purchasing managers’ index fell in September to a low of 20 months and now stands at 52.6 points.
The services index fell to a low of 21 months of 52.1 points, but the production index rose to a three-month high, 52.6 points.
The PMI in the Euro zone pointed on a low of 19 months, mainly due to the decrease in activity in Germany.
The consolidated index for the services sector and the manufacturing sector came in August to 52.9 points.
The European stock markets trading is conducted with slight increases towards the publication of macroeconomic data on the continent that could indicate an expansion of the service sector and production on the continent.
The PMI published in the UK last month pointed to a weakening of economic activity in the UK after a referendum voted to support the exit from the EU.
Disappointing manufacturing data from the Euro zone
According to the production index of purchasing managers in the Euro zone, the growth slowed in August to a level of 51.7.
Germany maintained the same growth as the July figure stood at – 53.6.
Italy disappointed with 49.8, contrary to expectations and France showed good results – 48.3.
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