Euro zone’s business growth was weaker last month, thus having dropped since the beginning of 2015, as per the latest surveys which have provided evidence on the region’s economy that is constantly and gradually losing momentum.
Furthermore, Britain’s proceedings on its official divorce from the EU, as well as France and Germany’s elections, amid the businesses having denied spending as part of their cautious measures force the euro region deeper in uncertainty and fear.
Euro zone’s Markit’s final composite PMI at 52.6
Last month’s growth was distorted, thus being a major concern for the policymakers, with only France progressing, whereas Spain, Germany, and Italy weakening further.
According to Apolline Menut at Barclays, the political and the economic uncertainty depend solely on the euro area’s confidence, amid expecting that the sentiment will be lower before and after the Brexit negotiations are reflected.
Furthermore, the euro zone’s Markit’s final composite PMI resumed lower than August’s 52.9 reading at 52.6 in September, being lower since 2015.
The European Central Bank’s attempts to bring the inflation target close to 2% failed, thus the ECB’s ultra-loose monetary policy being a failure.
The inflation rate for the nineteen countries sharing the euro climbed from August’s 0.2% reading to 0.4% in September, as per the Eurostat last Friday.
Moreover, today’s official data reported that the retail sales across the region fell 0.1% in August and were lower compared to July’s reading