The misery of the eurozone is not abating, and the German powerhouse is now also back in trouble, according to the latest snapshot of activity in the single currency area.
The PMI composite index for services and manufacturing in the euro area contracted for a 15th successive month in April, according to Markit. The reading was 46.5, unchanged on the previous month, with any figure below 50 signalling a contraction.
In Germany, the composite PMI fell below 50 for the first time since last November, indicating that the eurozone’s largest economy is contracting again. “With the economic engine of the eurozone stuttering, calls for a more active German role in the eurozone’s rebalancing process might eventually not trail away unheard,” said Carsten Brzeski of ING Bank.
“Maybe not for the sake of the eurozone but simply due to pure self-interest.”
The eurozone has been in contraction for five successive quarters, thanks to the continent’s unresolved debt crisis and deep budget cuts imposed by struggling member states.
The European Central Bank forecasts the euro area to contract by 0.5 per cent in 2013.
Spain, Greece, Italy and Portugal are all expected to suffer even sharper falls in output.
