European PMIs point to a deepening recession

Following weak PMIs earlier Germany has also seen a drop from 50.3 to 49 implying that its manufacturing sector is now contracting. The aggregate Eurozone index dropped from 47.9 to 46.8, implying that the recession could deepen. PMI is a forward looking variable, referring to purchase orders for the coming period. This is in contrast with often stressed GDP metrics that tend to look backwards and face multiple revisions.