Euro Zone Economic Gap

Forex December 14th, 2009

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Markit survey said the gap between strong and weak countries in the Euro Zone in 2009 grew wider. German service sector, high jump, while in Spain the service contract.

Widening the gap to make the European Central Bank (ECB) getting dizzy. Employers purchase index (PMI) services sector in the euro zone rose to 53.6 points in December from 53 points in November.Angka above 50 indicates expansion, while below 50 means contraction.

“Although the service sector PMI slightly below estimates, improvement occurred on a monthly basis shows that there continue to gather momentum of recovery speed,” said Markit chief economist Chris Williamson. Markit survey gives a picture that France and Germany leading the economic recovery in the euro zone.

ECB faces a difficult decision in the coming months, as the poor performance of the service sector in Spain. Last December, Spain PMI services sector recorded 45 points and the lowest for five months.

A survey released yesterday also showed that companies implement this strategy harga.Kebijakan cuts aimed at stimulating demand.

“The economy Spanish services sector ended 2009 with record low, completing the poor performance for two consecutive years. But, the data in December gives little indication that conditions will improve in the near future, there is a new business contract but employment continued to fall, “explained economist Andrew Harker Markit.

For the business activity index, Markit reported there was an increase in December to 56.8 percent. This performance above economists forecast. Activities of large companies rose faster than small businesses. “The report in December gives additional evidence that the economy out of recession in the quarter IV-2009,” said Capital Economics economist Vicky Redwood. Economists assess Markit survey gave confidence that the recovery in 2010 will be sustainable.

Economists also argue that the stimulus, the value added tax cuts, and a new car purchase subsidy little effect on growth.



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