Is the Euro Zone Finally Recovering?
While there are now a number of strong indicators that the euro zone is almost recovering from recession, there are still some shaky points and uncertainties for individual nations.
One of the most significant measures of the economic growth or decline in the euro zone is Markit’s Eurozone Composite PMI, which measures activity across thousands of companies throughout the euro zone. The PMI result for January reached a 10-month high of 48.6, which still indicates economic contraction but is a move in the right direction from December’s reading of 47.2. If the PMI increases to over 50, it would indicate economic growth.
A weaker France
The euro zone as a whole is turning around the decline, but not every member nation is faring equally as well. France — the bloc’s second-biggest economy — underperformed drastically. Where the euro zone as a whole saw the PMI reach a high point, France’s PMI reached a nearly 4-year low, with its services PMI falling below even those of Spain and Italy, to 42.7…