Global| Jan 06 2009Europe's Services PMI At New Low
Summary
The services PMI index for Europe fell to 42.06 from 42.47. All main reporting EMU members show very weak service sector indices. France is at an all time low (the data above date from May 2000 a period for which all these countries [...]
The services PMI index for Europe fell to 42.06 from 42.47.
All main reporting EMU members show very weak service sector indices.
France is at an all time low (the data above date from May 2000 a
period for which all these countries have observations). The EMU result
is a ten year low.
Weakness continues to be the order of the day across Europe.
The chart at the top shows that the MFG and services PMI’s both are
dropping sharply, although the pace of decline in services hints at a
slowdown in the unraveling.
The new wrinkle is the potential impact on Europe as gas
availability from the Russian pipeline is being curtailed stemming from
a dispute between Russia and the Ukraine. European nations are
suffering to various degrees but smaller countries with leaner
stockpiles are the most at risk. There is no sense yet that much
activity has been curtailed because of the light natural gas
deliveries, but an adverse economic impact remains a possibility if the
deliveries continue to be short or cut off entirely.
| NTC Services Indices for EU/EMU | |||||||
|---|---|---|---|---|---|---|---|
| Dec-08 | Nov-08 | Oct-08 | 3Mo | 6Mo | 12Mo | Percentile | |
| Euro-13 | 42.06 | 42.47 | 45.76 | 43.43 | 45.92 | 48.47 | 0.0% |
| Germany | 46.57 | 45.14 | 48.31 | 46.67 | 49.13 | 50.73 | 18.5% |
| France | 40.57 | 46.17 | 47.54 | 44.76 | 46.65 | 50.44 | 0.0% |
| Italy | 40.30 | 39.46 | 45.68 | 41.81 | 44.82 | 46.59 | 3.6% |
| Spain | 32.10 | 28.23 | 32.22 | 30.85 | 34.12 | 38.20 | 11.9% |
| Ireland | 34.14 | 32.60 | 36.05 | 34.26 | 37.47 | 42.01 | 4.3% |
| EU only | |||||||
| UK (CIPs) | 40.21 | 40.06 | 42.39 | 40.89 | 44.20 | 47.59 | 0.7% |
Robert Brusca
AuthorMore in Author Profile »Robert A. Brusca is Chief Economist of Fact and Opinion Economics, a consulting firm he founded in Manhattan. He has been an economist on Wall Street for over 25 years. He has visited central banking and large institutional clients in over 30 countries in his career as an economist. Mr. Brusca was a Divisional Research Chief at the Federal Reserve Bank of NY (Chief of the International Financial markets Division), a Fed Watcher at Irving Trust and Chief Economist at Nikko Securities International. He is widely quoted and appears in various media. Mr. Brusca holds an MA and Ph.D. in economics from Michigan State University and a BA in Economics from the University of Michigan. His research pursues his strong interests in non aligned policy economics as well as international economics. FAO Economics’ research targets investors to assist them in making better investment decisions in stocks, bonds and in a variety of international assets. The company does not manage money and has no conflicts in giving economic advice.
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