The Eurozone PMI numbers are sinking:
Eurozone industrial production fell 0.3% in March, the strong rate of growth seen this time last year according to official data, providing further evidence to suggest that the Eurozone is slipping deeper into another recession. The drop in March means production declined 0.5% in the first three months of the year, raising the likelihood of the economy having contracted for a second consecutive quarter. Compared to a year ago, production was down 2.2%, the steepest decline since late-2009 and a far cry from the strong rate of growth seen this time last year. …
Only Germany, Slovenia and Slovakia managed to record higher levels of production than a year ago. Steep rates of decline were seen in many other countries, with output slumping 8.5% and 7.5% on a year ago in beleaguered Greece and Spain respectively, while 5.8% and 5.7% rates of decline were seen in Italy and Portugal. It is not just the so called periphery that is struggling, however, with production falling 3.5% on an annual basis in the Netherlands and 1.2% down on the year in France.
For a chart of all EU countries PMI, go here.
Germany (strong savings, lower stimulus, high investment in production) remained the only major country with positive growth. The others showing positive results had undertaken reforms and austerity to aid recovery (Lithuania, Latvia, Slovenia, Slovakia, and Poland).
A sinking Europe bodes not well for the U.S.