May 4, 2012
In case you forgot how quickly the euro area economy was deteriorating, here’s a look at the latest reading of composite PMI for the 17-country region.
That index fell to 46.7 this month, even worse than an earlier flash reading of 47.4.
Perhaps most concerning is that the effects of the European Central Bank’s two three-year long-term refinancing operations appears to already be fading, as business activity rebounded slightly at the start of 2012 before declining sharply later in the year.
The idea that economic momentum driven by the LTROs has faded already stands in contrast to statements by ECB president Mario Draghi yesterday, who told reporters that the effects of the LTRO had not yet been felt in the markets.
This article was posted: Friday, May 4, 2012 at 3:28 am