Business activity in Eurozone remains volatile in October, as the dynamics was weak and economic recovery is losing momentum. The companies kept the prices for second consecutive month, despite that the costs increased by the steepest rate since July 2015. The broader Purchasing Managers’ Index (PMI) in Eurozone grew to 53.3 points in October from 52.6 points in September, but on first reading the value was calculated at 53.7 points. The index suggests that growth in the fourth quarter will be 0.3%.
The Eurozone economy continue to recover, but loses momentum. This shows that efforts of the ECB to stimulate the economy still are not working efficiently. Years of ultra-loose monetary policy has so far failed to get inflation anywhere near the central bank’s 2% target ceiling but the PMI showed input prices rose sharply, largely driven by higher staff costs and oil prices.
A stable but lackluster economic outlook will push the ECB to tweak its asset purchase program and announce by year-end an extension to it beyond March 2017.
However, should be noted that the PMI has been above the 50 points barrier, which divides growth from contraction, since mid-2013.
more recommended stories
House Republicans Step Up Effort on Tax Bill
In a year of legislative disappointments,.
Lies, Damned Lies, and Statistics: Phil Gramm and Michael Solon Edition
The popular aphorism that is commonly.
No More Easy Choices: The Death of the Phillips Curve?
“An economist is someone that will.
Stanley Fischer Resigns from Federal Reserve
Stanley Fischer is retiring from the.
Australia Q2 GDP Growth at 1.8%, While Household Savings Declines
The Australian economy expanded by 1.8%.
Swiss Inflation Perks Up in August
Prices in Switzerland increased by 0.5%.
Boeing Scores Major Victory Over Rival Airbus
Seattle based Boeing won a major.
Moody’s Sharply Revises Polish Growth Forecasts Higher
New York based credit rating agency.
Czech Growth Revised Upward to 4.7%
GDP growth in the Czech Republic.
Q2 Italian Growth Improves While Spanish Growth Tapers
Italian economic growth came in at.