Eurozone: Growth Versus Employment

The Eurozone economy is reported to be slowing down the pace of its growth. More and more economic indicators are confirming this statement. The Eurozone’s Composite PMI, which reflects the situation in both the manufacturing and service sector of the Eurozone, is reported to have lost roughly 3% in September 2016. To be more specific, the index shrank all the way down to 52,6 points. This is the worst result over the last 18 months.

According to Markit, the institute that conducted the survey and calculated the mentioned composite index for the Eurozone, this means that the quarterly economic growth is not going to exceed 0.35 this time.

At the same time, the mentioned research by Markit shows that the gap between the local services and manufacturing sectors keeps on widening. On the one hand, the Eurozone’s service sector is reported to be stagnating while the region’s manufacturing sector is reviving. There is difference between the Eurozone and EU economic as well. The biggest concern is that Germany, the Eurozone’s biggest and strongest economy, is also showing signs of weakness. The thing is that Germany’s private economic sector has shown the weakest performance over the last 16 months.