Eurozone economy is very cautiously recovering from the corona crisis

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Published on May 21, 2020 9:44 am |
        Views: 5,742
| Topics: Germany, Europe, France

LONDON (AFN) – Euro area economic activity is very cautiously recovering from the previous severe blows from the corona crisis, aided by the relaxation of lockdown measures. British market researcher Markit reported this. Markit previously released figures for France and Germany, which showed early signs of recovery, although there is still clear economic contraction.

The euro area manufacturing purchasing managers’ index, according to a preliminary estimate for this month, stands at 39.5 from 33.4 in April. A level of 50 or more indicates growth, below that shrinkage. Factories in Europe are slowly opening their doors again.

The index for the services sector, including tourism, retail, hospitality and aviation, rose to 28.7 from the dramatic low of April 12. Public life in many European countries is slowly starting up again and the services sector is benefiting from this. The eurozone composite industry and services index improved to 30.5 from 13.6 in the previous month.

Very long way to go

The Markit researchers warn that there is still a very long way to go before the European economy returns to pre-crisis levels and that there will be a major economic downturn this quarter. Businesses remain pessimistic and concerned, and many jobs are still being lost due to the crisis.

The index for the British industry went from 32.6 to 40.6. The barometer for the large service sector in Great Britain climbed to 27.8 from 13.4 in April. The composite index recorded a score of 28.9 from 13.8.

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  1. kabalebo wrote down May 21, 2020 9:50 am:

    Yes, I see the imports and exports in those countries, and especially the travel world, very strongly crawling out of the valley, … or was I wearing my wrong glasses? Or is the headline of this article ‘the wish of the father of thought?’ … … to support the masses? What a mirage is presented to you again.

    Calm down, why so negative. We’re going in the right direction again, that’s just a fact. I don’t understand people like you, just negative. It seems like you want to see the economist collapse. Is your life really that bad?

  2. kabalebo wrote down May 21, 2020 9:50 am:

    Yes, I see the imports and exports in those countries, and especially the travel world, very strongly crawling out of the valley, … or was I wearing my wrong glasses? Or is the headline of this article ‘the wish of the father of thought?’ … … to support the masses? What a mirage is presented to you again.

    Well, it is still strong shrinkage. Only the indicator climbs out of the trough. The economy itself slips further into the trough, but less rapidly than last month.

  3. I think nobody wants that, but he is referring to a fair that already assumes that everything is cake and egg again. And that we are still very far from that moment. And it will probably take another two years if the virus does not strike mercilessly; mutated or not.
    We are close to the top in my opinion. I’m not long at all anymore. My shorts have cost me some money now, but everything in my body and mind says that I am well and should stay put. Patience! Maybe I’m a little early but be patient.
    And then all new fair tourists are shaking and running to the exit, the algo rhythms do their job. And hatsa, cash register

  4. Sander 1234 wrote down May 21, 2020 10:06 am:

    I think nobody wants that, but he is referring to a fair that already assumes that everything is cake and egg again. And that we are still very far from that moment. And it will probably take another two years if the virus does not strike mercilessly; mutated or not.
    We are close to the top in my opinion. I’m not long at all anymore. My shorts have cost me some money now, but everything in my body and mind says that I am well and should stay put. Patience! Maybe I’m a little early but be patient.
    And then all new fair tourists are shaking and running to the exit, the algo rhythms do their job. And hatsa, cash register

    If you want Long you can also look at long-term call options. Only paid premium so risk is much less than if you buy shares for the same money.

  5. CPH-Cinq wrote down May 21, 2020 11:09 am:

    I’ve been following you for a while. And I’m in the real economy, and unfortunately I see what’s going on all around. Those redundancies in SMEs are not in the news. 12 men there, 6 men fired there and it will not stop yet. The stock market has really lost its pedals and a correction is really necessary, because we really should not put our heads in the sand. And assume that nothing has happened and princess Corona has not yet left.

    That is a bit too easily reasoned. The companies that fire people then have less costs. An employee costs relatively much, so with a lower turnover a nice profit can still remain. And if that company has a profit distribution, it is still interesting for investors, especially with an interest rate of 0.

  6. As a freelancer (machine builder) I provide my services at an R&D company as a specialist in my field. I am now being competed out there by engineering firms who can casually offer a comparable specialist (through secondment) for next to nothing; this allows the engineering firm to demonstrate a loss of turnover and still make a profit on this specialist with the government regulation and thus build a trusting relationship with this company at a low cost. I can also stay with this client, but whether I want to hand in 60% of my rate. Very nice such a government that facilitates this type of ‘competition’ in the market.

  7. StoplossBurner wrote down May 21, 2020 12:19 pm:

    As a freelancer (machine builder) I provide my services at an R&D company as a specialist in my field. I am now being competed out there by engineering firms who can casually offer a comparable specialist (through secondment) for next to nothing; this allows the engineering firm to demonstrate a loss of turnover and still make a profit on this specialist with the government regulation and thus build a trusting relationship with this company at a low cost. I can also stay with this client, but whether I want to hand in 60% of my rate. Very nice such a government that facilitates this type of ‘competition’ in the market.

    So exactly this. Wrote it elsewhere a few days ago, but government responses to corona are nothing but communism. The government determines that another company will get the job and that you have lost your job. Problems with it? Then you should have been friends with the government so that it would have made up a rule or subsidy for you.



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https://www.iex.nl/Nieuws/ANP-210520-089/Heel-voorzichtig-herstel-economie-eurozone-van-coronacrisis.aspx

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