Manufacturing industry figures from across the Eurozone released yesterday morning further highlighted the problems that the region faces. Most worrying were the figures out of Germany – the bloc’s flagship economy – which released a figure of 49.9 (anything below 50 represents an industry contraction). The overall figure for the bloc came in at 50.3, marginally outperforming the figures from the German economy.
The data bolstered the case for the European Central Bank (ECB) to turn to stimulus measures in order to inject some life into the region’s economy; as such, eyes will be on the ECB conference this afternoon. Many are calling for more aggressive bond-buying techniques from the ECB, such as those adopted by the US Federal Reserve and other central banks over the last 24 months. Any announcement of stimulus measures this afternoon will likely undermine the euro further, but owing to the fact that many have already forecast the move, it may have, to some extent, already been priced into the market.