• Germany's news in English

Survey: Private sector downturn in Germany

The Local · 4 Aug 2012, 12:01

Published: 04 Aug 2012 12:01 GMT+02:00

Facebook Twitter Google+ reddit

The Purchasing Managers Index (PMI) compiled by business research firm Markit was stuck at 46.5 in July according to a final reading, indicating another month of contraction in activity.

"The final PMI data for July confirm the message from the earlier flash estimate that the eurozone continued to contract at a quarterly rate of approximately 0.6 percent in July, suggesting the region looks set for a second consecutive quarterly decline," Markit said.

"The big worry is that the downturn in Germany may be becoming more entrenched," said chief economist Chris Williamson.

The readings showed manufacturing activity at a three-year low in July with Germany and France posting three-year-high rates of decline in this sector, while across the eurozone, job losses were at the sharpest rate since November 2009.

"Some consolation can be gained from the fact that the steep rates of contraction in Italy and Spain are at least showing signs of bottoming out.

Ireland also brings hope that the periphery can return to growth," Williamson added.

Story continues below…

London-based analyst Howard Archer of IHS Global Insight said the results all told "reinforces our belief that the ECB will be trimming interest rates from 0.75 percent to 0.50 percent within the next couple of months."


The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

15:35 August 4, 2012 by smart2012
Well done Merkel!
01:30 August 5, 2012 by lenny van
How about if all of the countries in the EU, except Germany and Austria, leave the EU together and form a free trade zone without Germany and Austria. The new union would allow unrestricted freedom of movement of labour and capital, endorse common standards of production and education, promote the continued use of English as the world's second language, build a common defence force and create a united federal bank that would finance the defence force, federal unemployement , medical and old age benefits and any "federal" projects within the union, which have been passed by a democratically elected

" economic" parliament (such as space exploration, foreign aid, federal highways, etc.) The federal bank would print and use a common currency that could be exchanged at any time for any of the national currencies at the prevailing rate of exchange. If the member states need help, it could also collect taxes directly to keep the federal debt to 3% of GDP. If a country exceeds that debt it would have to adjust its budget or face federal intervention and sanctions.

The Euro, which would only be used in future by the Germans and Austrians, would immediately double in value and instantly make the people in the German speaking countries very rich, Because they worship money, they would be so deliriously happy, they wouldn't notice or even care that they, as well as other money worshipping countries (like the United States) would have to apply for visas to visit the rest of European countries in the new union. These visas would be very restrictive and hard for the Germans to obtain, which would make the people in the rest of Europe happy, even though they would be a bit poorer, They would also feel more secure, because their new union would also act as a defence treaty against the countries, who have been known to be so militarily aggressive in the past.

We would all be better off if the Germans were separated from the rest of Europe.
02:10 August 5, 2012 by smart2012
Lenni van, your proposal is correct and I agree that it would be better for Europe, however u r missing the fact that if germany leaves Europe Germany will loose the competitiveness (they will be too expensive) which means their export will be killed hence Germany will die. This is why Germany needs euro,they r just playing the game, until merkel will win election, then maybe they will change
04:09 August 5, 2012 by siba
why the hell germany and austria? you can be sure that most of the northern european countries plus the NL would not like to be left alone with the more struggling countries, it is easy to hide behind germany so far, germany is the biggest country in the EU, that's why it is such in focus.

also most southern countries do not like to back up greece....

these seperations are mental constructs. germany is a very multi-cutural country today, with a grwoing spanish, italian and greek population... the eu has to become a united states of europe... then things can be solved, not by seperating.
10:39 August 5, 2012 by smart2012
Siba, I like your constructiveness and I fully agree that united states of Europe should be the future. I would be the first one to vote for it. However, after a year of this talks and seeing German populistic press and merkel behavior, I have to say that I see this as much less feasible than before, and actually I see how merkel strategy has destroyed the spirit of Europe and have regrown the typical German behavior which historically always brought to a disaster.

Germany is the focus because is the country which has badly driven the strategy (Merkel), and because is the only country where people like Rosler makes silly comments. If u recall, 6 months ago also France (sarkozy) was the focus, now nit anymore as sarkozy luckily is gone

Germany and diversity? I would have agreed with u 10 years ago, however after 10 years in Munich I have to say this is a dream and i bet in the future there will be riots btw Germans and Turkish. I also struggle to see mire Italians/Spanish/Portuguese growing in Germany. Big emigrations happen in the 50s /60s, what it is today is a small drop only inflated by BILD to justify how struggling Germany is better than others.
Today's headlines
Munich to get 'nice toilets' to serve cross-legged locals
Photo: DPA

The Bavarian capital has a pee problem - the city only has one public toilet for every 13,000 inhabitants. But a new plan could rescue desperate locals, the Süddeutsche Zeitung reports.

German kids get glowing report for their English skills
Photo: DPA.

As if multilingual Germans don't already put many English-speakers to shame, now the younger generation is improving their English skills even more.

Berlin museum controversially recreates Hitler bunker
The reconstruction of the Hitler bunker. Photo: DPA

Sensationalized or compelling history? Berlin museums clash over new Nazi bunker exhibit

Germans think they're fit, but they're really couch potatoes
Photo: DPA.

There's been an increase in the number of Germans who define themselves as "fit", but their lifestyle choices don't quite match this self-perception.

10 fascinating facts you never knew about German beer
Tennis coach Boris Becker and his wife Lilly at Oktoberfest 2016 in Munich. Photo: DPA

From malt and monks to Radlers and rivalries, the story of German beer is as rich and wonderful as its selection.

Intensive farming 'endangers a third of German species'
Photo: DPA

There are 32,000 species of animal, plant and mushroom life native to Germany. Due to intensive farming methods, one in every three of these is endangered, a new report shows.

German hospital uses therapy to 'treat' paedophiles
A poster from the campaigne "Don't offend", which offers therapy to paedophiles. The sign reads "Do you love kids more than you'd prefer? There's help." Photo: DB Scholz & Friends / DPA.

A unique German initiative is offering therapy to paedophiles to control their urges, with the aim of getting them help before they offend.

Minister: 'no tolerance' for clowns after chainsaw attack
Photo: DPA

Interior Minister Thomas de Maizière has called for a zero-tolerance approach to 'killer clowns' after a series of attacks culminating in two teenagers being chased by a clown wielding a chainsaw.

Baby who was auctioned on eBay taken away from father
Photo: DPA.

A German court ruled on Thursday that a man who put his one-month-old baby up for sale on the online auction platform eBay should only be allowed contact with the child under supervision.

Portugal's ruling party calls German minister 'pyromaniac'
Finance Minister Wolfgang Schäuble. Photo: DPA.

The head of Portugal's ruling Socialists called German Finance Minister Wolfgang Schäuble a "pyromaniac" on Thursday after he criticized Lisbon for reversing course on austerity.

10 German clichés that foreigners get very wrong
Sponsored Article
Last chance to vote absentee in the US elections
10 ways German completely messes up your English
Germany's 10 most weird and wonderful landmarks
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
jobs available
Toytown Germany
Germany's English-speaking crowd