Europe plunges into recession


Europe is plunging into recession:

Led by manufacturing:

Services catching down:

The HCOB Eurozone Services PMI Business Activity Index fell for a second month running in June to 52.0, from 55.1 in May. Although signalling sustained growth, the upturn was only modest and the weakest since January. There was a slowdown in new business growth at the end of the second quarter. Having hit a one-year high only as recently as April, the increase in new workloads eased to a marginal pace in June that was the softest in five months. Dragging on demand was a renewed, albeit fractional, deterioration in sales performances to non-domestic customers.

Much worse is ahead:


As the ECB keeps tightening:

Apparently, a recession is better than inflation!


We shall see when equities tumble into crashing earnings.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.