THE EUROZONE is still stuck in recession and shows no signs of recovery, according to influential survey data published yesterday.
Both the services and manufacturing sectors are still contracting, Markit’s purchasing managers’ index (PMI) showed, with France contracting hard and Germany showing few signs of life.
A PMI score of above 50 indicates growth, but the Eurozone’s score for May came in at just 47.7.
German output held steady at 49.9, though the manufacturing sector continued to decline at 48.1.
And the French economy is still in trouble – its services PMI came in at a very gloomy 44.3 in May.
“The Eurozone’s second recession in five years looks set to drag on into a seventh successive quarter,” said Markit economist Chris Williamson.
“The European Central Bank’s quarter-point cut in interest rates has done little to inspire confidence the economy will start to pick up. In fact, expectations about the year ahead deteriorated again in the service sector, suggesting recovery remains a long way off still and that policymakers need to do more to revive growth.”