Wednesday’s chart: more euro core decoupling

The spread between the economic performance of the French private sector and Germany’s has attained the highest point since the crisis began.

Afi analysts in Madrid noted that “Germany, once more, detached itself from the deterioration observed in the rest of the eurozone economies with a solid services industry record, supported by good new demand figures.” And increasingly, France comes included in the rest. The consequences of this development will be felt  at the table of negotiations, when the French government attempts to push Germany for a relaxation on deficit targets and less austerity.

In the euro area, although the composite purchasing managers index of the common currency union, with 48.6 points in January from 48.2 last December, has improved very slightly towards the 50 mark–which sets expansion from recession–, experts suggest it is too soon to call it a recovery.