Euro Zone Slump Accelerates, Swiss Trade Surplus Shrinks

Arthi Gupta
20 Sep, 2012
New York City

German producer prices rose and Swiss trade surplus fell in August. The euro zone private sector contracted and French manufacturing PMI fell in September. Italian industrial orders rose unexpectedly in July.

[R]2:00 PM Frankfurt – German producer prices rose and Swiss trade surplus fell in August. The euro zone private sector contracted and French manufacturing PMI fell in September. Italian industrial orders rose unexpectedly in July.[/R]

Euro Zone Private Sector Contraction Eases

Euro zone private sector economy contracted for the twelfth time in the past 13 months in September despite downturn easing in Germany, data released by Markit Economics showed.

The seasonally adjusted purchasing managers'' index for the manufacturing sector rose to a six-month high of 46 in September from 45.1 in August. The corresponding indicator for the service sector dropped to a 38-month low of 46 in September from 47.2 in August.

The composite output index, which measures activity in the manufacturing sector and the service sector, fell to 45.9 in September from 46.3 in August. Any reading below 50 indicates a contraction.

Germany Producer Prices Climb

Germany''s producer price index increased 1.6% on an annual basis in August, from the 0.9% rise in July, data released by statistics office Destatis showed today.

Energy prices rose 3.2% annually, while capital goods prices climbed 1.1%.

On a monthly basis, the producer price index advanced 0.5% in August.

Separately, German private sector output seems to be close to stabilization in September, according to data from a survey by Markit Economics showed today.

The seasonally adjusted purchasing managers’ index for the manufacturing sector rose to 47.3 in September from 44.7 in August, and hit the highest level in six months. The services activity index rose to 50.6 in September from 48.3 in August.

The seasonally adjusted Markit Flash Germany Composite Output Index increased to a 5-month high of 49.7 in September, up from 47 during August.

French Private Sector Shrinks

The French private sector worsened in September, survey data from Markit Economics showed today.

The flash composite output index fell to 44.1 in September from 48 in August.

The services purchasing managers'' index dropped to 46.1 in September from 49.2 in August. The manufacturing PMI dropped unexpectedly to 42.6 in September from 46 a month ago.

Accelerated falls in output were recorded in both the manufacturing and service sectors during September.

Swiss Surplus Drops

Swiss trade surplus fell to Sfr1.733 billion in August from Sfr2.88 billion in July, data released by Swiss Federal Customs Administration showed.

Exports rose 4.4% annually in August following a 0 .8% increase in July. Imports grew 0.9% annually in August following a 2.3% increase in July.

Separately, Swiss watch exports grew 12.7% annually in August to Sfr1.5 billion, according to the Federation of the Swiss Watch Industry.

Danish Retail Sales Fall

Denmark''s retail sales decreased a seasonally adjusted 0.4% on a monthly basis in August, unchanged from the fall in July, data released by Statistics Denmark showed.

Retail sales of food and other groceries dropped 0.5% sequentially in August, data showed. On an annual basis, retail sales fell 2.3% in August, from the 3.1% drop in July, the agency said.

Separately, Denmark''s consumer confidence deteriorated in September, data released by Statistics Denmark showed Thursday.

The consumer confidence index dropped to -2.2 in September from 0.0 in August, Statistics Denmark said.

Italian Orders Up

Italy''s industrial orders increased a seasonally adjusted 2.9% sequentially in July, data released by statistics office Istat showed.

On an annual basis, overall industrial orders dropped 4.9% in July.