EU Business Growth Slows

EU Business Growth Slows.

The latest Eurozone Purchasing Managers Index (PMI) has showed that despite still increasing business growth in the EU, it has eased slightly in February compared with January.  The Composite Output Index fell to 52.7 this month from January’s 31 month high of 52.9.

This is the eight consecutive month that output as remained above the no change mark of 50. This means that there has been continuous growth since July. New orders have hit their highest rate since 2011.

Although growth is being seen employment has remained at the same level for the last three months, which means that despite new orders or the rise companies were due to a focus on productivity and competiveness.

With companies attempting to compete to survive, output prices have dropped for the twenty second month, although, again only marginally.

Comment

These figures are a clear demonstration that both the UK and Eurozone recovery is a fragile one that will continue to need stimuli from central banks and governments.