MADRID | Afi analysts drew today investors’ attention to the widening divergence between the manufacturing cycle of the European Monetary Union and other economic blocs. PMI figures of the manufacturing sector fell again in the euro zone’s aggregate indicator, slipping into activity contraction levels. Apart from China’s, the rest of PMI numbers are either consolidated or approach the expansion area.
At Afi, experts forecast a EMU GDP downward correction of 0.1pc to 0.2pc, and risk of recession during the first quarter of 2012 as it was during the last quarter in 2011. But they note that the fiscal adjustment being carried out by peripheral countries has a boomerang effect over the core Europe countries. The message is not new, the graphs are: France’s PMI has dropped from 50 to 46.7, which is the biggest loss month on month recorded since November 2008.
Perhaps it is time for candidates to the French presidency to acknowledge that
“the country faces an imminent economic shock, which they are utterly failing to acknowledge.”