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You can find the current article at its original source at http://www.theguardian.com/business/2016/may/02/eurozone-factory-growth-weakens-despite-heavy-discounting
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| Eurozone factory growth weakens despite heavy discounting | Eurozone factory growth weakens despite heavy discounting |
| (35 minutes later) | |
| Eurozone factories performed slightly better in April, with output not losing as much momentum as initially forecast although growth in activity stayed weak despite deep discounting, a survey shows. | Eurozone factories performed slightly better in April, with output not losing as much momentum as initially forecast although growth in activity stayed weak despite deep discounting, a survey shows. |
| There was a mixed picture , with manufacturing growth strong in Italy and Spain last month while Germany showed signs of reviving. Activity in France, however, contracted at the steepest rate in a year. | |
| Markit’s manufacturing Purchasing Managers’ Index (PMI) for the eurozone rose to 51.7 from March’s 51.6. A reading above 50 indicates growth. | Markit’s manufacturing Purchasing Managers’ Index (PMI) for the eurozone rose to 51.7 from March’s 51.6. A reading above 50 indicates growth. |
| Related: Europe's liberal illusions shatter as Greek tragedy plays on | Related: Europe's liberal illusions shatter as Greek tragedy plays on |
| “The survey is signalling an anaemic annual rate of growth of manufacturing production of just less than 1%, which is half the pace seen in the months leading up to the recent slowdown,” said Chris Williamson, chief economist at Markit. | “The survey is signalling an anaemic annual rate of growth of manufacturing production of just less than 1%, which is half the pace seen in the months leading up to the recent slowdown,” said Chris Williamson, chief economist at Markit. |
| “The survey data therefore so far shows no signs of European Central Bank stimulus or the weaker euro helping to revive the manufacturing sector, at least for the euro area as a whole.” | |
| The eurozone economy grew 0.6% quarter-on-quarter in the January-March period, early data showed last week. While that was more than expected, inflation once again fell below zero last month as energy prices dropped. | The eurozone economy grew 0.6% quarter-on-quarter in the January-March period, early data showed last week. While that was more than expected, inflation once again fell below zero last month as energy prices dropped. |
| What is likely to make for grim reading in the survey for ECB policymakers is the deep discounting manufacturers have had to resort to to drum up new business, even though deflationary pressures appear to be easing slightly. | |
| The output price index came in below the flash reading of 47.7 at 47.4, higher than March’s 47.1. However, the latest result was the second-lowest since early 2010. | The output price index came in below the flash reading of 47.7 at 47.4, higher than March’s 47.1. However, the latest result was the second-lowest since early 2010. |