‘Green shoots of recovery’ in EU

Green shoots of economic recovery are evident in Europe, with influential survey data showing growth in manufacturing output and the Spanish jobless rate falling for the first time in two years.

Figures from Markit suggest that a recovery may be in sight for parts of the Eurozone economy after the purchasing managers’ index (PMI) came in at 50.4 in July, up from 48.7 in June and the highest level for 18 months. A figure above 50 indicates growth in the market, and although the service sector is still shrinking with a PMI of 49.6, manufacturing output is rising with an index score of 52.3 - a 25-month high.

The figures were released as the National Statistics Institute revealed Spain’s unemployment rate has fallen for the first time in two years, dropping to 26.3% in the second quarter of the year down from a record 27.2% in the first quarter. Despite remaining one of the highest in the EU, it's news that will be welcomed by the government of Prime Minister Mariano Rajoy, which has continued to implement austerity reforms - but argue the recession will soon be over.

Markit’s Chris Williamson said: “The data will provide a summer fillip to policymakers, especially in terms of there being light at the end of the tunnel for austerity-hit periphery countries.”  

As more positive data starts to flow through, there will be a steady reverse in austerity-driven risk aversion to growth tactics, which could signal a new era for the economic bloc toiled by the debt crisis.

TMF Group has offices across Europe where our staff can advise businesses on any market changes. With dedicated accounting, legal and HR and payroll staff globally, we can take care of the details, leaving you free to focus on your global ambitions.

 
Article
  Article

Keeping up to date

You can now receive our insights and regulatory updates direct to your inbox by choosing the topics and jurisdictions that most interest you. 

Subscribe to our e-Alerts.