© Reuters. FILE PHOTO: A view reveals high-risebuilding workplace residentialorcommercialproperties at La Defense service and monetary district near Paris, France, June 26,2023 REUTERS/Stephanie Lecocq
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By Jonathan Cable
LONDON (Reuters) – The euro zone economy is mostlikely agreement this quarter and won’t return to development anytime quickly, a study revealed, as the moistening impact of main banks’ long project of interest rates increases endsupbeing clearer.
HCOB’s flash euro zone Composite Purchasing Managers’ Index (PMI), puttogether by S&P Global and seen as a excellent gauge of general financial health, increased to 47.1 in September from August’s 33-month low of 46.7.
The reading was still listedbelow the 50 mark separating development from contraction, nevertheless, and Hamburg Commercial Bank stated the bloc’s economy would agreement 0.4% this quarter, far evenworse than the flatlining anticipated in a current Reuters survey.
“A economicdownturn is endingupbeing progressively clear in the euro location. Unlike in the winterseason half-year of 2022/23, the financial weakpoint is not focused in Germany, which has suffered especially severely from high energy rates,” stated Christoph Weil at Commerzbank (ETR:).
“The boost in the ECB secret interest rate by 450 basis points in the meantime is slowing down the economy in all euro nations.”
Although 2 years of extraordinary international policy tighteningup might have reached a peak, significant main banks have served notification they will keep interest rates as high as required to defeat inflation.
The effect is now being plainly felt, with diminishing company activity in Germany, Europe’s