In the latest report of Zurozone Business Conditions, S&P Global reports that Purchasing Managers are seeing reduced input prices, with lower orders, indicating that the European Economy is slowing rapidly. Across the board, price pressure is slowing; on the sell side, prices are rising at the slowest rate in almost two-and-a-half years, while on the manufacturing side, prices have fallen to a level not seen since the Great Financial Crisis of 2008-09.
Will this mean that the European Central Bank can stop hiking rates? Not likely; most economists believe that the ECB will hike rates one more time when they meet next month. Currently, the ECB’s Core Interest Rate is 4.0%
For an excellent article on the current PMI reading by Chris Williamson, go here:
