Euro Zone: French Economy Slips

Staff Writer | November 21, 2013 | 2:45pm EDT

A recent Markit analysis shows that the French economy has started to dip back into recession.

(photo: Wikimedia Commons)
(photo: Wikimedia Commons)

 

FRANCE (INTELLIHUB) — Data recently released by the firm Markit shows that France will likely slip back into recession despite all efforts to maintain a strong Euro dollar. 

Recently the Euro “fell to 51.5 in November from 51.9 in October, according to preliminary data, as the decline in France offset further improvement in Germany. Economists had expected the composite index for the euro zone, which tracks both manufacturing and service sectors, to rise to 52, according to Barclays.”, reported Jack Ewing writing for the New York Times.  Most analysts contribute the decline to President François Hollande’s lack of leadership and his failed tax programs.[1]

On the flip-side, reports show the German economy is holding strong. The Wall Street Journal reported, “Germany’s economy has consistently outperformed the rest of the euro zone since the onset of the region’s debt crisis four years ago. And its PMI rose 1.1 point to 54.3 in November, with both goods and services sectors notching gains from the previous month, suggesting Europe’s largest economy is accelerating after weak third-quarter growth. In a positive signal for future activity, new business increased at its best rate in more than two years.”[2]

 

Sources:

[1] Data Shows a Step Back for Euro Zone – NYTimes.com

[2] Data Suggests Euro-Zone Recovery May Be Fizzling – Online.WSJ.com

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