2024-08-07 15:48:19
Industrial production in the eurozone continued to decline in July. In particular, the eurozone manufacturing purchasing managers’ index (PMI) fell to 45.6 points this month, reaching a seven-month low.
As reported by Day.Az with reference to TASS, the international rating agency S&P Global informed Politico about this.
The newspaper also cites PMI values in individual EU countries: in Germany, this figure was 42.6 points in July, and in France, 44.1. According to the newspaper, these figures “confirm the worst fears of EU leaders” regarding the European economy. “This looks like a serious problem,” says Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank. According to him, the sharp and significant drop in production volumes in Germany has caused a general decline in the country’s economy.
As the publication writes, the damage to European – and above all, German – industry was caused by a sharp rise in energy prices after the EU introduced an embargo on Russian coal and oil supplies in 2022. Now, hopes for a quick recovery of the community’s economy after the crisis are disappearing. “The situation in [европейской] industry <...> “looks gloomy, and there are no signs of changes for the better,” the newspaper quotes the head of the Central Bank of Finland, Olli Rehn, as saying. According to him, the time has come for EU countries to admit that the industrial downturn “is not as temporary and cyclical as previously assumed.”
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