Factory production in France and Germany collapses as storm clouds gather over the Eurozone economy
Factory production is falling in France and Germany, with storm clouds gathering above the Eurozone economy
Factory production is falling in France and Germany, with storm clouds gathering above the Eurozone economy.
The production in both countries is contracted, says a survey by the research group IHS Markit, which suggests a downturn at the end of last year.
As the French and Germans bring the economy of the euro zone to power, it is feared that it could give the entire block a major impetus.
The Markit index of the manufacturing sector, which has fallen below 50, was 49.6 this month in France, the lowest level in three years. In Germany it was 45.6.
It is believed that a collapse in demand for diesel vehicles due to pollution concerns and a crackdown on world trade by US President Donald Trump are the cause.
For the Eurozone as a whole, the Markit value was 47.8.
Markit's Chris Williamson said quarter-on-quarter growth in the eurozone is up 0.2 percent. He added, "The data add to the concern that the economy has not recovered because of the conviction of one-off factors that have affected activity over the past year."
Germany has lowered its growth forecast for 2019 from 1 percent to 0.5 percent this week.