February's preliminary reading of PMI index in Eurozone is pessimistic. Index of industry and services fell from 50.4 in January to 49.7 in February, according to Home Brocker. The main reason is downturn in the services sector. Even small correction in the industry wasn't able to change this situation. Especially poor situation in Germany influenced the decline in the index. In services index fell from 53.7 to 52.6 points, in industry – from 51,0 to 50.
Not only Europe, but also China is in the stagnation phase. February's preliminary reading of PMI index for industry in China was 49.7 in January, which means that China is for the fourth consecutive month in the phase of stagnation (the index is below 50).
Probably economic problems on the old continent will not be resolved soon. Rapid growth is unrealistic.
PMI index indicates in which direction the economy is going and helps to predict her prospectives. This indicator is one of 5 so called sub-indicators.
Weak economy in the Eurozone
Economic situation is getting worse in Eurozone, indicates preliminary PMI index in Eurozone.