Pressure is mounting on Mario Draghi, the European Central Bank president, to increase stimulus efforts after a swathe of poor data revealed the Eurozone was on the verge of a triple-dip recession.
The purchasing managers’ index (PMI) released yesterday reveal that France scored a 48.1 for October, which is below 50, and signifies a decline of activity. The figure is an eight-month low and is down from 48.4 in September.
The PMI, compiled by Markit, is a survey of firms that is widely used as an indicator for GDP.
Due to economic weakness, France has earned the label of “the new sick man of Europe”.
The Eurozone as whole scored a 52.2, up from 50.0 in September. Above 50 signifies growth. However, this is still weak and not consistent with a strong recovery.
“The headline number misses the darker picture painted by the survey’s other indices, which show the region teetering on the verge of another downturn,” said Chris Williamson, economist at Markit.