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European Debt Crisis Feeding Into Economy, Data Show

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Signs emerged Tuesday that Europe’s sovereign debt crisis was feeding through into the euro-area economy, as unemployment rose and a survey pointed to a slowdown in the recovery of manufacturing, with a sharp decline in Greece.

While Greece accounts for less than 3 percent of the euro-area gross domestic product, a survey of purchasing managers by Markit Economics pointed to a plunge in manufacturing that will make it that much more difficult for the country to solve the debt problems that are at the heart of Europe’s crisis.

Manufacturing growth in Spain also may be losing momentum, according to Markit.

Meanwhile, Spain retained the dubious distinction of being the euro-zone country with the highest unemployment rate — 19.7 percent, compared with an average of 10.1 percent for the 16 countries in the zone. Unemployment for the euro area as a whole in April was up from 10 percent in March, according to Eurostat, the European Union’s statistics agency.

The data reinforce widespread concern among economists that austerity measures in Europe’s most heavily indebted countries will stunt growth, reducing tax revenue that Greece, Spain, Portugal and Ireland need to service their debts.

The surveys show “the speed with which uncertainty surrounding the sovereign debt crisis appears to have hit business activity,” Chris Williamson, chief economist at Markit in London, said in a statement.

Still it's contained, it's the best ever consensual recovery.


The FTSE 100 closed down 25.13 points - 0.5pc - at 5163.30, having been down as much as 2.4pc at one point. The blue-chip index would have ended up on the day, but for BP tumbling 13pc.

Investors were cheered after the US Commerce Department said construction spending had risen at the sharpest rate in almost a decade.

The 2.7pc rise in spending in April was the biggest since August 2000, and was much stronger than the 0.1pc increase forecast by economists, suggesting recovery in the world's biggest economy was gaining ground.

'This number likely in large part reflects government housing incentives in place through April, but underscores an improvement in the housing market more generally too," said Peter Newland of Barclays Capital.

The Dow Jones, which opened down 0.6pc after the falls in European and Asian markets, was up 0.7pc in late trading at 10207.10 after the construction data were published.

The positive news from across the Atlantic also helped other European markets. Spain's IBEX 35 on Tuesday closed down 0.6pc at 9299.7 after being down as much as 2.9pc at one point. The German DAX closed up 0.3pc at 5981.

The initial sell-off was driven by data which showed slowing growth in the Chinese manufacturing sector, raising fresh fears that the global recovery was losing steam.

The recovery is here, people just have to accept the good news.

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..........and yet little or no pain here........£ doing ok............Phoney war?


A new sticking plaster is on the wound so we'll all be just fine. The patient has no heart or lungs, but the 'machine' is keeping it alive until the transplant from the ECB arrives. Lots of ink and paper on the way from China so we can print them more IOU's.

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Greece already had a rubbish manufacturing sector.

The only thing i have ever seen made in greece apart from some foodstuffs is bic razors , probably something to do with early retirement? they should be more like Germany ; make em work till they die.

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  • 429 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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