'France is perhaps the new worry'
2012-10-01 12:42:10
The Markit PMI (Purchasing Managers Index) data from Europe is portraying a dull picture of the eurozone economy.
"France is perhaps the new worry, with its PMI slumping to the lowest for three-and-a-half years," Williamson, chief data collator Markit said to Reuters.
For the three months running into September, the manufacturers across the Europe have seen the worst quarter in 3 years.
“The sector will act as a severe drag on economic growth. It therefore seems inevitable that the region will have fallen back into a new recession in the third quarter." Williamson added.
The Markit PMI climbed to 46.1 in September from 45.1 in August which is a tad above the preliminary reading of 46.0.
A figure below 50 is indicative of contraction and the economy is continuing to the 14th month of a 'below-50' performance.
Meanwhile, rating agency Fitch has retained UK's AAA rating; but has warned that weaker growth and weak fiscal output in the current year may increase pressure on the top rating. The negative outlook is in place since March 2012.
The grim picture may help channel the investors rush towards bullion.