You Know, We Might Be Looking At Another European Recession Already

4
767

Just to give us a bit more information on how well the European Union works. It’s entirely possible that we’re looking at another recession over there already. Yes, fair enough, this is a couple of indicators, no more, but, you know, some of them matter.

And wouldn’t it be just a glorious justification of the euro if it managed to go back into recession without having really left the last one?

Germany’s manufacturing sector remained stuck contraction in May, according to the latest PMI® data from IHS Markit and BME. Though rates of decline in output and new orders eased, employment fell the most in almost six-and-a-half years. A sustained decline in demand for inputs meanwhile contributed to a fall in purchasing costs for the first time in nearly three years and the most marked improvement in supplier delivery times since the global financial crisis. May saw the headline IHS Markit/BME Germany Manufacturing PMI – a single-figure snapshot of the performance of the manufacturing economy – register 44.3, down fractionally from 44.4 in April and one of its lowest readings since mid-2012. The fall in the PMI reflected the employment, stocks of purchases and supplier delivery times components.

But that’s Germany, what about the wider eurozone?

By nation, Germany continued to endure the sharpest deterioration in manufacturing operating conditions, with its respective PMI again signaling a marked rate of contraction. Austria saw the health of its manufacturing economy deteriorate to the greatest degree for over four years. Italy’s PMI also remained below 50.0, albeit only slightly. Only marginal growth was seen in France and Spain. Greece remained the best-performing country in terms of manufacturing expansion. Underperformance of the region’s manufacturing sector continued to be closely linked to deteriorating order books. Latest data showed an eighth successive monthly fall in new work received. Panelists reported falling demand both at home and abroad – as highlighted by another solid (albeit slower) fall in new export orders during May.

Gosh, shouldn’t we be so grateful to that European Union system? We’re in the middle of one of the greatest technological revolutions ever to have hit the human race and the federasts have managed to cook things so that we don’t even see any economic growth from it.

Well Done!

It’s not why are we leaving but why is anyone stupid enough to stay?

4
Leave a Reply

avatar
2 Comment threads
2 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
3 Comment authors
Leo SavanttMattQuentin Vole Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
Leo Savantt
Guest
Leo Savantt

The German Centre for European Policy has reported (20 Years of the Euro: Winners and Losers 2019) that Germany and the Netherlands are by far the main beneficiaries of the Euro, whilst France and Italy have been the biggest losers. The report also noted the negative impact on the southern Eurozone countries. The 10 non-Eurozone countries in the EU do better, with higher levels of growth. Whilst it might be true that Poland and Hungary, for instance, have more scope for growth as they start from a lower base than Germany, it is very probable that were they in the… Read more »

Matt
Guest
Matt

An artificially weak currency may be good for the owners of the large German conglomerates, but good for Germany as a whole? Every German is worse off because their currency is worth less than it would be absent the Euro. How many more beers could be purchased on the Costa Del Skol if paying prices in Pesetas with D-Marks than paying in Euros with Euros? How much cheaper would BMWs be _for Germans_ buying them in DM when the imported components are bought with strong DMs instead of weak €?

Leo Savantt
Guest
Leo Savantt

Indeed, just a few decades ago German tourists in the world’s exotic destinations were commonplace, today their absence is conspicuous; their buying power in Euros is a lot less than it was with DMs. Of course reunification costs no doubt have also played a part in reducing part of the population’s disposable income. However if Germany had kept the DM exports would certainly been more expensive and therefore employment less. The raw material cost of most manufactured products is a very small part of the overall cost, wages, development, energy and plant are much more significant, so BMWs would probably… Read more »

Quentin Vole
Guest
Quentin Vole

But that’s Germany, what about the wider eurozone?

The eurozone’s economy is Germany + rounding errors.