Eurozone Manufacturing slips while Asia is on a roll.

Eurozone Manufacturing_Sector

Eurozone Manufacturing_Sector

The manufacturing sector of Eurozone showed a sharp shrink in almost three years in April, while the data from Asia seems to be very impressive for the quarter. The numbers from the US manufacturing sector also showed a surprising rise in factory growth which left Eurozone as the weakest link in the economic chain with the austerity programs and fiscal crisis taking a toll.

Germany’s manufacturing sector showed a downfall for second consecutive month while France had the similar story to tell.

Eurozone crisis is showing no signs of improvement lately and it’s rather facing a downturn with the updated manufacturing sector data coming in.

With the Eurozone currency bloc already being under the threat of a failure is likely to keep moving towards recession until the third quarter. With China’s HSBC PMI below 50 for the sixth consecutive month, UK, a major trading partner of Eurozone also showed a shrink in manufacturing sinking itself more into recession.

Unemployment soaring to new heights

Eurozone Crisis gets worse with its unemployment rate rising to new height in March as 169,000 people lost their jobs. Eurostat, Eurozone’s official statistics agency published the unemployment rate update for Eurozone which indicated a rise from 10.8 % to 10.9 early this year. This matches the highest peak in last fifteen years.  The number of jobless people increased by about more than 1.7 million in last one year while this has been the highest in last 15 years.

The rise in unemployment will certainly bring consumer spending down very soon and Eurozone crisis will have a tough time in climbing the ladders of recovery. This will also bring a discontent amongst most members of the Eurozone with the austerity programs put in place.

Demonstrators were reported to be turning out in huge numbers for May Day rallies in the Eurozone countries on Tuesday. They held protests against their governments’ applying austerity programs and gaining popularity with elections coming up in Greece and France on May 6.

While new orders continue to fall, the manufacturers are forced to lay off more and more people and hope of jobs market to turn around in near future seems like a dream.

Eurozone is under a huge debate right now whether austerity is making the Eurozone debt crisis worse rather than helping to resolve it. Optimistic members of the Eurozone still have a hope that foreign demand with help their economies prop up at such an extent that they will be soon be capable of their own budget retrenchment.

 

Jay Raol

Recent Posts

Strong iPhone 12 sales could boost Apple’s Q3 2021 earnings

Strong iPhone 12 sales could boost Apple’s Q3 2021 earnings

Will Apple manage to post solid earnings in Q3 2021? Here’s what Wall Street’s top analysts have to say ahead of Apple’s Q3 2021 earnings report today.
17 hours ago
Tesla earnings top $1 billion for the first time

Tesla earnings top $1 billion for the first time

Tesla earnings not only blew past analyst expectations but also marked the first time the automaker’s quarterly profit joined the three-comma club.
19 hours ago
Elon Musk tweet pushes Dogecoin prices up again

Elon Musk tweet pushes Dogecoin prices up again

Dogecoin was launched as a joke in 2013. The cryptocurrency is up a staggering 6,000% compared to last year’s prices due to wild speculations.
19 hours ago
Amazon to hire a crypto lead, may soon accept payments in cryptocurrency

Amazon to hire a crypto lead, may soon accept payments in cryptocurrency

The product lead will develop the full marketing strategy from customer experience to technical development to launching it.
2 days ago
Billionaire CEO Elon Musk Shares the Brutal Truth about Life as an Entrepreneur

Billionaire CEO Elon Musk Shares the Brutal Truth about Life as an Entrepreneur

“I would say I’ve had some pretty tough life experiences and Tesla’s probably responsible for two-thirds of all personal and professional pain combined, to give you a sense o
3 days ago
AT&T, Airbnb & UPS among firms to face Akamai’s global outage

AT&T, Airbnb & UPS among firms to face Akamai’s global outage

Global outage causes Akamai Technologies to re-think cyber securities.
5 days ago