In November, manufacturing activity in the euro area fell once again in the last five months, signaling that a recession is approaching in the region. aforementioned in the report of the financial company S&P Global.
Analysts at the agency said the eurozone manufacturing index stood at 47.8% last month and fell below 50% for the fifth month in a row. However, compared to October, S&P recorded some improvement. Then the indicator was at a 23-month low of 47.3%. This indicates a “slight” recession in the economy.
“The fifth consecutive decline in output raises the probability of the eurozone going into recession. However, the downturn remains moderate for now, and the slowdown in the overall rate of contraction (in business activity) in November means that the region is now expected to shrink by only 0.2% in GDP. S&P Global Market Intelligence.
A recession is understood as a decrease in GDP (the economy of the country) for two consecutive quarters. In mid-November, the press service of the European Commission declarationThe European Union countries will have a harsh winter as the European economy will be in recession at least until the end of the first quarter of 2023.
At the International Monetary Fund (IMF) in the first half of October reportedthat the eurozone economy will grow by 3.1% by the end of 2022.
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.