| Date: July 22, 2010 | Source: Sources |
Go ahead and rate this post 
Loading ... The private sector in the euro area surged this month against the expectations of analysts who had expected a slowdown in growth and concerns about a double dip, according to the PMI index published by Markit.
Both service sectors such as manufacturing had an increase in the rate of growth and recruitment companies made more, but Markit warned that growth could be boosted by the temporary World Cup.
"We are very surprised.'s A good start for the second half of the year (...) but still suspect there will be a slowdown in the second half of the year," said Chris Williamson in a conference call, at Markit.
The Purchasing Managers Index (PMI) from Markit advance of the service sector for the euro area rose to 56 points in July from 55.5 the previous month, significantly exceeding expectations to be placed at 55 points.
Also manufacturing index rose to 56.5 points in July from 55.6 the previous month, against forecasts that it stood at 55.2. The composite index rose to 56.7 points from June and 56 points against a forecast of 55.5 points.
| Date: March 24, 2010 | Source: Reuters |
Go ahead and rate this post Loading ... Economic recovery in the euro area has increased in March due to the improved activity and private sector output has recorded its strongest growth since August 2007, according to PMI that makes Markit Economics.
He adds that the pace of job losses in the euro area "continued fading" to register the smallest decline in private sector employment for 19 months.
The indicator suggests that expectations for the next 12 months suggest that there will be a new attenuation of the reduction of the workforce, while employment in manufacturing has been "slightly stronger" than in the service.
However, employment in the service sector has declined at the slowest pace since September 2008.
According to the survey from Markit Economics in March, the recovery of activity and production has reached in the two sectors, the fastest pace in the case of manufacturing since June 2006 and in service since November 2007.
Composite Index Total Activity in the Euro Zone, prepared with information provided by the companies on their level of real activity in mid-month, compared with the previous month in March stood at 55.5 points compared to registered 53.7 in February, representing the eighth consecutive increase of private sector activity.
The recovery of the euro area economy has been due to the increase in total new orders and new export orders. The latter have been favored in part by the weakening of the euro.
In manufacturing, the ratio of new orders and the "stock" of finished products has grown to its highest since October 1999, which, according to the report, suggests that in the coming months, producers must remain "strengthening" the productivity to meet growing demand.
Following this demand, the backlog has increased in March for the fourth consecutive month, especially in manufacturing.
For the same reason, the delivery times of suppliers in the industry have risen and supply shortages have caused prices paid recorded their biggest gain since August 2008.
The costs in the service sector also grew but at a "much lower" than the long-term average of the series, restrained by weak wage pressures.
| Date: January 6, 2010 | Source: Economic @ 21 |
Go ahead and rate this post Loading ... Spain recorded a GDP contraction of 0.7% in 2010 and together with Greece and Ireland, will remain at the tail of the economic growth in Europe, says Tuesday the U.S. entity Morgan Stanley, says the country has numerous tasks for restore balance in the future.
"Unlike in other European countries, Spain is in the middle of a structural adjustment, particularly in the construction sector, which will weigh on the economy in 2010 and 2011," predicts the report.
However, the bank asserts that this adjustment is taking place "fairly quickly" and that if productivity continues to accelerate, Spain could become "more competitive" and benefit from the recovery of exports.
The entity identifies five factors by which the country's economic growth will continue to evolve negative in 2010 and upwards, but slowly, in 2011, the first one, "that stabilization of the construction sector is still far" and is unlikely to stabilize soon.
Second, consumer spending levels remain "anemic", but the bank predicts that the Spanish labor market contraction will be harder than in other European countries, but "shorter" as well.
In addition, warning about the high leverage of private sector, which "weighs" about the economy and that will continue "for some time," although the lower mortgage interest rates and corporate could provide "some relief".
IMPROVING THE COMPETITIVENESS
On the other hand, the bank warned that credit availability will remain constrained over the next two years, as banks are reluctant to lend because of uncertainty about potential losses, even though the government ensure that the institutions are well capitalized.
Finally, Morgan Stanley warns that because of the large budget deficit that keeps the Spanish economy, the country can not long maintain fiscal stimulus and remember that tax increases for this year are already on the agenda of the Executive.
But not all bad news for the Spanish economy, says the bank, which emphasizes "rapid pace" with which the adjustment is taking place. "With GDP to shrink less than employment, labor productivity has accelerated," said Morgan, who says that if these benefits are sustained, will reduce unit labor costs, which will encourage competitiveness and exports.
A recovery in exports could help rebalance the economy whose main pillars of growth have been domestic factors during the years of boom, says Morgan Stanley, however, remember that the country will be the last to leave the eurozone recession.
| Date: April 25, 2009 | Source: Sources |
Go ahead and rate this post Loading ... Continuing the barrage of bad and good news, this time it is the turn to a positive: The Group of Seven (G-7), formed by the major world economies, said Friday that one begins to see some signs of "stabilization" and that recovery could begin to get "this year" but warned that there are still risks.
"Recent statistics suggest that the decline in our economies has been reduced and they begin to emerge some signs of stabilization," the G-7 in a statement after meeting Friday in Washington.
And while confident that economic activity should begin to recover "later this year" amid still weak outlook, warning that the downside risks still "persist."
RECOVER THE JOBS AND GROWTH
The G7 leaders renewed their commitment made at the meeting in London on April 2 to continue "working together" to restore jobs and growth and to prevent another crisis of this magnitude recur again.
Thus, the finance ministers agreed to adopt whatever efforts are necessary to accelerate the path of growth while preserving the long-term fiscal sustainability.
"We will act, as necessary, to restore lending, provide the necessary liquidity, injecting capital into financial institutions, protect savings and deposits and address impaired assets" they added.
Protectionist barriers
They undertook to refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions or implementing measures of the World Trade Organization to stimulate exports.
On the other hand recognizes that many countries are playing a central role in the global economy and welcome their contributions to the collective effort of the international community to promote recovery.
Finally, after reaffirming their interest is an international financial system "stable" and "strong", warned that the volatility "excessive" and movement "order" of exchange rates have implications "adverse" to economic stability.
| Date: April 22, 2009 | Source: Reuters |
Go ahead and rate this post Loading ... 
According to estimates released today by the IMF reduced growth forecasts of all major countries by financial instability. According to this, Spain's GDP will fall by 3 percent this year and 0.7 percent next. The International Monetary Fund (IMF) predicts higher unemployment in Spain and a longer recession than predicted in January, given the collapse of production in Europe and the U.S. during the past six months.
In the Spanish case, the external wind meets the domestic downturn in the housing sector, which must continue to "significantly" still, as predicted by the Fund. With the correctness of the figures, so far estimated a decline of 1.9%, the institution about the opinion of the Bank of Spain, who predicted an economic contraction of 3% this year and 1% in 2010 .
Far away are the latest estimates of the executive, developed in January, which spoke of a contraction of 1.6% this year and positive growth of 1.2% for the next. The Fund also aligns with the central bank with respect to unemployment, joblessness portend for 17.7% of the workforce in 2009 and 19.3% in 2010.
The thud of economic activity away with any hint of inflation this year, as prices will remain unchanged, according to the Fund. In fact, the annual rate of inflation recorded in March the first fall since the collected information, to download a tenth. That has raised the threat of deflation, which slows growth by encouraging consumers to delay purchases, waiting for prices to fall further, economists said. For 2010, the Fund believes that prices will rise 0.9 percent in Spain.
Germany, Italy and France not escape the crisis
At European level, "the risk of sustained deflation has increased, although still low," the IMF warning, recommending that the European Central Bank (ECB) to further reduce interest rates to stimulate spending. Weakened domestic demand for the end of the housing bubble, Spain can not trust much to export to its main trading partners will take the hole.
The Fund reduced forecasts for growth in Europe, in some cases very dramatically. Germany will contract by 5.6% this year, France 3% and Italy 4.4%. Overall, the euro area GDP will fall by 4.2% this year and 0.4% in 2010. Given this scale, Spain does not seem too bad off, but started from a level of activity much stronger than its neighbors. In 2007 the economy expanded by 3.7%, which means that within two years of growth will decline by almost 7 percentage points, if they meet the prospects of the Fund.
The Fund also notes the increase "dramatic" risk premium of the Spanish Treasury bonds, given the lack of investor for the obligations contracted by the Government to respond to the crisis. The higher cost of public debt "limits future tax options" in Spain, alert the body. In its report, the IMF does not spare criticism of Europe, which was accused of resting on its laurels while the crisis was brewing. "Macroeconomic policies responded slowly" and the instinctive reaction of governments was to take measures alone "that undermined rather than strengthened the interventions of other countries," he says.
The Fund seeks to Europe to establish mutual support mechanisms to aid members of the Union and "ideally" also Eastern European countries which stick out into the abyss of bankruptcy. "This is essential to avoid a disorderly adjustment in one country can sink to others," he warns. A particular danger is a departure in rout of Western banks in Eastern Europe, making it impossible to pay the debt to some of the governments of the area and its western neighbors even more vulnerable, according to the IMF.
| Date: April 2, 2009 | Source: Europa Press |
Go ahead and rate this post Loading ... The British Prime Minister Gordon Brown, announced today a billion dollars to restore global economic growth, half, 500,000 million for the International Monetary Fund (IMF), to triple its resources to reach 750,000 million after the agreement reached at the G-20 summit held today in London.
In the press conference of presentation of the conclusions of the summit that was held today in London, which began half an hour later than expected, Brown confirmed that the world leaders pledged to build a new international regulatory system and to take "any action is necessary "to recover the path of growth.
In his speech, the president said today is "the day the world came together, not with words but with a recovery plan and a clear timetable," despite the division with which he had pulled this morning due to differences between the Franco-German axis, which denounced the lack of concrete commitments to increase financial supervision, and U.S. demands for approving new stimulus plans, off the reluctance of most European countries.
