Monday, January 2, 2012

European Manufacturing Still Contracting?

So saith Markit in their latest Purchasing Managers Survey.  The above graph shows the historical correlation between the PMI and change in actual output according to Eurostat.  Markit is below the 50 level associated with contraction, but nowhere near as bad as 2008 (yet, anyway).  In other news - Italian 10 year bonds have been back over 7% throughout the holiday season:

So Europe is still some way from having resolved its problems.

1 comment:

Alexander Ac said...

The less (industrial) production the less poisoned weather

Italy is finished and I thought they will not make it through 2011 without financial help, I was too pessimistic, or, I was too optimistic about our ability to dig a deeper (debt) hole...