Daily Management Review

Eurozone, China Slow Down in July


Eurozone, China Slow Down in July
Following the Greek crisis, the economic growth rate in the Eurozone slowed down slightly in July.
The data released on 24 July show that the Markit Eurozone Purchasing Managers’ Index showed a decline from 54.2 in June to 53.7 in July.
This is the sixth-highest reading since mid-2011 and was slightly above the registered average for the first six months of 2015. The index was however lower than the expected 54.0 as predited by analysts.
It is notable that these results have despite a couple of nervous months for the Eurozone following the Greek economic crisis.
There was decline in the manufacturing sector which declined by 0.3 on the index to touch 52.5. The services sector also recorded a fall of 0.6 to clock 53.8.
Growth rates in the German and French economies fell with German growth rates clocking lowest in two months and French growth lowest in a three month period.
The Greek debt crisis managed to impact only slightly as shown by the growth index figures despite wide spread speculation since the last month, said Markit’s chief economist Chris Williamson.
Analysts are however optimistic that the Greek crisis had not managed to lay any significant impact on the overall growth rate in the Eurozone and this is indicative of the ‘business as usual’ for the region as a whole.
However, fragile recovery will slow in the second half of the year, says analysis as is indicated by July’s fall in the Eurozone composite PMI.
Jennifer McKeown, senior European economist at Capital Economics said that more decline in the coming months of August and September are a possibility and would indicate weaker growth.
 “July’s decline reflected falls in the manufacturing and service sector indices and follows yesterday’s disappointing drop in euro-zone consumer confidence, ” McKeown said.
On the other hand in the far East there was slide in the Chinese growth rate indicating that the threats to the economy had not yet faded away.
For China, the Markit purchasing managers' index for July declined to a fifteen month low of 48.2 from 49.4 a month ago. The reading for July was well below the expectations of 49.7.
China had noted a growth at the end of the last quarter. But the July figure shows that the quarter end growth had not rubbed off on the first month of the new quarter.

“There is downside growth risk in the Chinese economy,” noted Julian Evans Pritchard at Capital Economics.
However analysts are of the view that the recent policy easing has yet to fully feed through into stronger the economic activity and this has given the hope that the much weaker-than-expected PMI reading would not affect the predicted better near-term outlook.
This slip, analysts say, would help policy makers to make mid-term course corrections to prevent growth from slipping much further this year.
Further interest rate cuts and further reductions in the reserve requirement ratio are some of the policy corrections that analysts foresee and expect from the Chinese authorities in response to the dismal July growth figures.

With tight monetary policies and hike in China's real effective exchange rate, more direct action like fiscal spending, is expected by the analysts.
(Source: www.digitallook.com) 

Science & Technology

Stock trading computers are not a future anymore

Temper Technology With Humanity - Apple's Cook Tells MIT Graduates

As Spying And Crime Tools Mix, Blame Game For Cyber Attacks Grows Murkier

Retailers Could Transform The Market Scenario Into Smart Shopping Experience For The Consumers With The Cloud

A Way To Unlock Wannacry Without Ransom Found By French Researchers

China to introduce face recognition payment system

Clues To Ransomware Worm's Lingering Risks Found By Security Experts

Nasdaq Brings ‘Analytics Hub’ To Provide Enhanced Trading Experience

Through XFi Launch, Comcast Moves Closer To Home Connectivity

Is SWIFT really safe?

World Politics

World & Politics

U.S. Official Says Russians Targeted 21 Election Systems

The Britain’s Prime Minister To Bring Down Corporate Tax To Draw More Investments In The Country

Record 65.6 million people were displaced in 2016

Are millionaires preparing for an apocalypse?

EU says goodbye to mobile roaming charges

Denmark loses interest to electric cars

Global Airlines Conference Agenda To Accord Importance To Fresh Safety Concerns

Arab countries break ties with Qatar