, and the economic outlook is bleak!
2019-12-17 11:59 from：CAPSTONE author：Jack
Capstone Online CFD Trading：the euro ’s December manufacturing PMI was lower than expected, and the growth rate of the service industry is still resilient, but any further weakness in the labor market will cause the manufacturing sector to affect the spillover.
The initial value of the December PMI for the manufacturing sector in the Eurozone announced at 17:00 on December 16th (Monday). The published value: 45.9, the previous value: 46.9, the expected value: 47.3. Eurozone ’s initial PMI for services in December, published value: 52.4, previous value: 51.9, expected value: 52. The euro zone ’s initial PMI for manufacturing in December was lower than expected, but the service sector ’s initial PMI was better than expected.
The performance of the euro area economy in 2019 is the worst since 2013. Enterprises are struggling with the headwinds of stagnant demand, and the economic outlook for next year is bleak. The economy has stalled for four consecutive months, and PMI indicators suggest that economic growth was only 0.1% in the fourth quarter. There are few indications that the economy will improve, new order growth has stalled, and job creation has almost stopped. The growth rate of the service industry is still resilient, but any further weakness in the labor market will lead to spillover from the downward impact of manufacturing.
On the German side, the overall integrated PMI remained steady at 49.4 in December. The data shows that the German economy ended a difficult year with weak data. The manufacturing industry continues to put pressure on the output of the private sector, factory production and employment fell faster in December, and the manufacturing PMI fell for the first time in three months. The slowdown in new orders and exports then provided some hope. The service industry is still resilient, corporate activity is increasing at a faster rate, and corporate confidence is rising. Weak labor market trends may remain a limiting factor in the new year.
For France, the latest PMI data shows that the growth rate of French private sector economic activity has slowed further, and the manufacturing results have been disappointing.
Manufacturing output stagnated, and new orders returned to the contraction range. On the other hand, the growth rate of the service industry is still generally in line with the trend and continues to provide support for the economy. Taking into account other data, the model indicates that France's economic growth in the fourth quarter was about 0.4%. The agency believes that "as French manufacturing activity declines, there are some warning signs, but at least for France, the services sector has continued to grow, which has kept the composite index stable. But if Germany's data also shows this The situation will further prove that the view that European manufacturing bottoms out is immature. "
French and German manufacturing figures are disappointing, but at least the services sector is stable to some extent. Although the data does not have a big impact on the euro, it will disappoint buyers who want the euro area economy to grow early next year. "
Why Choose Capstone Online CFD Trading?
* EURUSD Avg spread of 0.1 pips is the best in the world
* Starting Deposit $100
* Leverage up to 1:400
* Transfer your funds securely with 0% Commission
* Average execution speeds of under 45ms*
* Our diverse and proprietary liquidity mix keeps spreads tight 24/5