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Economy

Eurozone PMI Shows Unexpected Recovery

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By Douglas A. McIntyre Updated Published
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Europe’s economy has shown unexpected resilience, and it may even be recovering from a deep recession, according to PMI data from Markit that covers July, Since the EU economy is the largest by gross domestic product (GDP), the news should be heartening to the United States, and even battered China. which eventually will benefit from the recovery.

Markit reports:

Flash Eurozone PMI Composite Output Index at 50.4 (48.7 in June). 18- month high.

Flash Eurozone Services PMI Activity Index at 49.6 (48.3 in June). 18-month high.

Flash Eurozone Manufacturing PMI at 50.1 (48.8 in June). 24-month high.

Flash Eurozone Manufacturing PMI Output Index at 52.3 (49.8 in June). 25-month high

Europe has apparently pulled away from the problems of its weakest members. Given the deficits in Greece, Spain and Portugal, and their difficulty reaching austerity goals, southern Europe may fall behind the balance of the region, perhaps for year. Economists often have feared a two-tier recovery would tempt the European Union and International Monetary Fund to abandon efforts to help these three nations, if the numbers from the balance of Europe was big enough. None of the three has GDP that is large enough to effect the numbers of the region much.

The news about eurozone’s PMI has to be taken as good for the United States, which has a massive trading relationship with the European Union. A recovery in the region will particularly help American multinationals, which have repeatedly claimed that Europe is the single largest drag on their earnings.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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