Eurozone PMI at 20-month low as growth slows in Germany, Italy and Spain

https://www.markiteconomics.com/Survey/PressRelease.mvc/844a1c95437e4c9b871c5a4939a80f88



Chris Williamson, Chief Business Economist at IHS
Markit said:
“While the PMI surveys suggest the eurozone
economy continued to grow at a 0.3% rate in the
third quarter, there are signs that momentum is
waning. September’s expansion was the smallest
since the start of last year.
“The slowing rate of growth across the region in
part reflects growing caution among businesses in
terms of their spending due to worries about the
economic outlook, linked in many cases to political
uncertainty. We see this trend persisting into next
year, as the impact of Brexit is exacerbated by
uncertainty surrounding elections in France and
Germany alongside ongoing political unrest in Italy
and Spain.
“While we see the eurozone economy expanding by
1.6% in 2016, even this modest growth is looking
unattainable in 2017 given the heightened political
uncertainty that lies ahead.
“Of the four largest euro states, only France is
showing signs of its upturn gaining momentum, with
growth trending lower in Germany, Italy and Spain.
The latter remains the stand-out performer,
however, with the PMI pointing to 0.6% GDP
growth in the third quarter, double the 0.3% rate of
expansion signalled for both France and Germany.
Italy is perhaps the greatest concern, with the PMI
indicating a near stalling of economic growth to just
0.1% in the third quarter.”



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