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EUROZONE economies have lost their momentum as Ireland bucks the trend and keeps recording positive numbers.
Jobs growth across the euro region has stagnated and business output slowed to its lowest growth rate of 2014 as activity in both the French and Italian economies slipped backwards.
The latest Purchasing Manager’s Index (PMI), from financial analysts Markit, noted Ireland was a “bright spot on the labour market horizon” amid what were otherwise gloomy conditions.
Business activity in Ireland grew at the fastest rate since August 2000 on the back of a big rise in new orders, the PMI indicated.
Output growth in the country’s services sector, which includes businesses like retailers, hotels and education providers, hit a two-month high.
A similar Investec index this week put manufacturing growth in Ireland at an even longer high – 176 months, to be exact.
What does it all mean?
The Markit index is based on a survey of manufacturing and services firms, and it is viewed as a good early indicator of what is going on in the business sector.
Ongoing tensions between Ukraine and Russia have been sending wobbles through European economies, putting a dampener or confidence and spending.
Retail sales have also been weak across the Eurozone, down in July after a positive blip in June.
Markit chief economist Chris Williamson said European growth figures were the weakest recorded so far this year.
“The eurozone economy is defying expectations of gaining momentum, which will no doubt add to calls for the ECB (European Central Bank) to embark on full-scale quantitative easing,” he said.
But Williamson said it was probably too early to see anything other than more strong words from the ECB on the subject.
Feeling ease-y
The ECB has yet to resort to full-scale quantitative easing - basically, creating new money to buy assets – although its president Mario Draghi recently said the bank had “intensified prepatory work” for the stimulus move.
The bank is due to meet tomorrow and it has been under pressure to kick-start financial recovery.
Analysts at JPMorgan Chase today predicted the ECB would buy up to €40 billion in assets to get more money flowing into the region’s economies.
READ: This morning, major European economies hit the slow lane. Here’s what it means
READ: Pressure is mounting on Mario Draghi to turn on the cash taps
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So they’re looking at quantative easing, which was absolutely out of the question to give the gullible Irlanders a dig out for saving their currency and banks, but as soon as Germanys economy slows down it full staem ahead with the QE quicker than you can say ‘I have sauerkraut in my lederhosen’.
Do I have to mention the ‘seismic shift’? If it can’t be secured now, it was a lie all along.
Unemployment still way too high, property bubble on the horizon, thousands of mortgage arrears still not being dealt with, water charges on the way to compliment all the other extra taxes introduced over the last few years, banks still restricting credit and the national debt is as high as it ever was. “Sure we’ll be grand”.
And you forgot the interest rates that will have to go up at some point. That’s going to be the real killer for Ireland
2008 was nothing. It was caused by banking debt. Now we enter a period where sh!t is about to hit the fan with SOVEREIGN debt.
When banks crash, some people lose their jobs.
When countries crash, everybody loses their life savings along with their jobs.
Quantative easing devalues savings so it’s not in the interest of Germany, a country of savers. I’m sure Germany will continue to resist it – as they should as it makes us all poorer.
George what property bubble , that is government spin, europe is an asylum doctored by Germany because the EC bank is there.
She lifted her skirt and we were amazed to see that she was a “he”. ;-)
The same story is being spun here in Spain. The economy is on the up but with nearly 6 million unemployed it is not having any effect. In august alone the nearly 300,000 people have had their dole cut off, at least a million families have all members on the dole, so they can paint all the pictures the want but the next ten years will be bleak
“Ireland: The recovery is on track but almost six years after the economic bust, fantasy economics endure.” http://www.finfacts.ie/irishfinancenews/article_1028114.shtml
Bigmac it is all lies I watch a financial banker from Germany talk on Bloomberg this afternoon. Nothing changed Germany does not see the rest of Europe as being significant or allowed any point of view. Their business sector fears if this changes the german economy will collaspe. I guess we are told this lies in Ireland because of are impending auster budget in October and an election in February 2016.
Ireland had enough our politicians know this and our growth is slowing european growth is at 0.2% not healthy because Spain and Ireland will be dragged down once again with Europe.
sure that was the situation in 07.If Europe goes down so does Ireland. If interest rates go up, Ireland goes down. “We” are living the American dream, one pay cheque from being kicked out on the street
doesnt it feel like theres an election on the way with all this spin.
Come on you boys in Green, the rest of Europe will again look upon us with the respect we deserve for our astute economic genius! Everybody go home and treat yourself to a bottle of champagne.
FFS ,?Ted r u on white powder,?
He’s on a drug called “Understanding the concept of irony”.
“Ireland steams ahead” pfft
This all sounds very familiar
Unbelievably familiar..
Yay Thursday nites on the lash are back on the cards! !
So how long will Ireland steam ahead for if its European market is dead in the water?
In your face, Europe.
US multinationals are the key drivers of Ireland’s economy, so no worries, for the moment at least. It’s a case of steady as she goes!
Our 12.5 % Corporation Tax rate; being the only English speaking country in the Euro Zone; and the excellent work of Enterprise Ireland, is what’s keeping the Yankee Dollar Investments flowing Ireland’s way. Hopefully, no major changes emerge to US corporation tax rules that might change the dynamic for FDI from there to Ireland.
If Germany okays QE, it will be to suit its own interests, and nobody else’s. But this will also suit Ireland big time. As David McWilliams says “start those printing presses”
Putin’s antics must really have messed up Germany as well as Russia’s own economy given the olive branches being held out today regarding Ukraine.
Common sense always returns when billionaires get around a table.
Such shite
Oh, isn’t that nice. JP Morgan (settled a fraud case brought by the US Justice Department for 13 billion USD) is predicitng the ECB moves. Meanwhile, the ECB hires Blackrock Financial (charged with securities fraud by the New York Attorney General) to provide advice as it ” as it thrashes out the final design of its plan, including how much, which assets, and what ranking of bonds it will buy.”
You can’t make this stuff up. What the hell are we doing in this monetary system that is run by fraudsters?
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