Global PMI Update: 10 Of 11 European Countries In Contraction

Tyler Durden's picture

Overnight, global July PMI data was released. In a nutshell: the contraction in the world economy is accelerating primarily due to that fulcrum continent, Europe, where 10 out of 11 countries indicated they are now in contraction. And since Europe is the nexus economy for global trade, what happens in Europe happens everywhere. As BAC summarizes: "From June’s levels’ global PMIs were mixed with roughly half (13) of the manufacturing PMIs decreasing over the course of the month. Out of the 23 countries that have reported so far, sixteen of the PMIs indicate that their manufacturing sectors are contracting – indicated by a PMI reading below 50. Europe’s sovereign debt and banking crisis continues to take a toll on the region’s manufacturing sector. Out of the 11 European countries that we reported on today, 10 printed with a PMI below 50. In other words, the majority of the global manufacturing weakness is stemming from Europe."

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GetZeeGold's picture


It's of them just couldn't make it.


Biosci's picture

Those damned socialist Swedes and their economic growth just won't get with the program.

The source says RAND--the corp, or the China PMI generator?

Short Memories's picture

Iceland is expanding! Love it! :D


GMadScientist's picture

That's Ireland.

Honestly, noone gives two shits what Bjork does with her sauna and herring.

Biosci's picture

And NOBODY wants to publicize the results when a nation tells the banks to piss off.

GetZeeGold's picture



You really have to see it in person to truly appreciate it.


zapdude's picture

I believe that is reference to Excel =RAND() fx for generating a random number. 

Clever Tylers!

Stoploss's picture

Fortunately, the US has decoupled!!

No problems here!

Step right up and buy as much shit as you can carry.  LOL!!

Jason T's picture

..then put it in storage until you can't make those payments anymore and poof, its gone. 

RobotTrader's picture

Wow, what a weak global economy.


Yet Bernanke has pulled off a miracle:

- Dow at 13,000

- Bond yields at 1.45%

- No inflation

- Safe havens like gold and silver hammered to multi-year lows

This feat will be discussed in economics textbooks for the next 50 years, and hundreds of PhD seekers will be writing about it with awe and admiration

Manthong's picture

Yeah, there will be a Joseph Goebbels endowed chair at the Ben Bernanke Graduate School of Economics.  

GetZeeGold's picture



Yet Bernanke has pulled off a miracle - Dow at 13,000


What level would you like to see next? What the doesn't actually cost us anything.


BurningFuld's picture

Indeed, It will go down as how he destroyed America.

King_Julian's picture

Hammered? Gold=$1610. Bond yields are destroying savings and Social Security. You are right about one thing: they will write about Bernanke and the miracle he still walks the earth.

EscapeKey's picture

It will be discussed in textbooks alright, but I don't think we agree on the ultimate reason why.

This is definitely pennies and steamroller time. 1.45% yield on 10-year bonds is both ridiculous (doesn't reflect the risk even in the slightest) and totally unsustainable in the face of insane deficits across the Western Hemisphere. At some point, the event horizon is reached, and who times it perfectly can retire a rich man.

GMadScientist's picture

I'm surprised by Hungary and Ireland.

slaughterer's picture

Robo appears, Silver plunges 2.25%.  Correlation?

GetZeeGold's picture



Long on hot air. Don't ask for a silver dime.....cause we don't have one.


Be glad to write a check though.


Zero Govt's picture

this is (not) lookin good

we've had Trillions thrown at 'the economy' (the most unproductive people on Earth, bankers and politicians) and got nowt to show for it 

where's Paul Krugman when you need him (to answer for this epic failure) ?

GMadScientist's picture

Not true. Look at the whupass we unleashed on that debt ceiling!

Zero Govt's picture

the bill (debt ceiling) is the only thing 'growing' expodentially

Krugman (and all the corrupt to the core politicos and central bwankers) promised us growth in the economy ..."stimulus"

so will these abject failures, with 4 years of rising bills and no extra food on the table, now fall on their swords

if they can't at least do that i'd take it out of my day to arrange it for them

swanpoint's picture

and so silver goes drops 70 cents in 5 minutes.

JustObserving's picture

The CFTC will investigate for 4 years and say everything is A-OK.  We have the best free market discovery mechanisms in the world. Wonder why everyone is moving their trading accounts overseas?

GetZeeGold's picture



The CFTC will investigate for 4 years


That's fast for government work.



THE DORK OF CORK's picture

The very strange nature of Ireland is well.......... strange.....

Tanking domestic demand yet major exports.

According to the BP stat review for June 2012 ,  Ireland had the biggest Yearly % contraction of oil consumption in Europe and indeed the world during  - 10.4%......beating Greece at -7.9%.......

 So averaging 142 MBD in a further decline of 135+MBD 12 month moving average today.......all our exports must go to pay off the debt incurred it seems.   Ireland is now a expression of a perfect colony that does exactly what it says on the tin.  
q99x2's picture

And out is gonna pop a bunch of still born Draghis.

Mongo's picture

And to whit... IMF tells Sweden to stop saving and start spending.



FRBNYrCROOKS's picture

These numbers look sketchy to me? Most listed as being in expansion look to have been down from May to June, then up in July, then listed as Expansion? China has had a consistent drop yet they have her listed as Expansion? Who is throwing out this skewed data? I say it is Horse Hockey! They don't know what they are talking about!


If your life is, simply, getting into your limo for a ride from Park Ave to Wall St. Out to dinner with the wife after work, then a limo ride back home. Then back and forth to the Hamptons once a month.

I ask: How would they know anything?

I say they don't know diddly-squat!

El's picture

Over 50 is considered an expanding economy. Under 50 is considered a contracting economy.

Sudden Debt's picture

FYI: Belgium is also in contraction: -0.6%

So 11 countries are in contraction...


mkhs's picture

Be careful.  When hope comes with change, lookout.