Survey Confirms Weakness of German Manufacture - Prensa Latina

25 de julio de 2019, 08:00Berlin, Jul 25 (Prensa Latina) The weakness of Germany''s manufacture sector was confirmed by a survey carried out by the company IHS Markit, which showed the growing problems affecting the country''s economy.

According to the poll, Germany's Purchasing Managers' Index (PMI) dropped to 43.1 percent in July, from 45 percent in June, its worse result since 2012 and under the 50-percent level that separates growth from slowdown.

The PMI measures the activity of a sector based on surveys to companies on employment, production and orders, and it is one of the first data published to follow the economic evolution of a country.

'The health of the German manufacture industry worsened in July,' IHS Markit Senior Economist Phil Smith admitted, and warned about the effects of the fall in exports, the biggest in a decade.

The expert noted that statistics increase the risk of a 'slight technical recession' in the third trimester of the year.

'The auto industry is the entrepreneurial sector that is most pressured,' said Chris Williamson, another IHS Markit economist.

Williamson stressed that these are results from a situation marked by growing commercial disputes, uncertainty about the United Kingdom's exit from the European Union and the decrease in foreign demand for German automobiles and other industrial products.

As Germany is the European engine, the weak performance by the country's manufacture sector weighs down the economy of the Eurozone.

The results of the survey on Germany confirm the predictions by the Central Bank of this nation, which recently said that the local economy slightly shrank in the second trimester of 2019, compared to previous period, when it grew 0.4 percent.

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