THANK GOD WE’RE LEAVING: Eurozone Industrial Growth Crashes To Four-Year Low
Industrial Growth in the Eurozone has fallen to its lowest rate in over four years, adding to concerns that the European Union’s long-term future is doomed to economic failure.
Amid mass “gilets jaunes” – or “yellow vests” – protests in France and uncertainty surrounding Britain’s exit from the EU, the Eurozone’s composite purchasing managers’ index (PMI) reading fell to 51.3 – its lowest figure since November 2014.
While a member of the European Union, Britain’s economic success is very closely linked to that of the Eurozone as a result of EU policy and treaties, but after leaving the EU Britain will be free to arrange its own trading arrangements around the world without being tied up in European bureaucracy, meaning the plummeting growth figures through the Eurozone will not affect Britain post-Brexit.
The PMI figure – which measures growth in the industrial sectors – was expected to come out at around 52.8 for the Eurozone, a 0.1 rise on its previous figure from November.
However, economists were shocked when the true figure was revealed to be 1.5 lower than expected, marking a sudden drop in the growth of economies across Europe.
Experts are suggesting that the dramatic fall in Eurozone industrial growth is caused by a number of factors, including the “yellow vest” protests across France – which are now spreading across Europe – and a number of trade wars sparked by EU foreign policy.
Rates strategist at Bayerische Landesbank, Alexander Aldinger, said: “The growth concerns are back – the French PMIs were affected by the demonstrations but all across the eurozone the PMIs were weaker than expected.
“The market’s reading is that the ECB will not be able to hike rates next year if the outlook deteriorates further – especially with China-US trade tensions and Brexit worries in the background.”
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