French Manufacturing PMI Resembles that of Greece Rather than Germany

The monthly €80 billion ECB’s quantitative easing, harmful internal reforms and high public deficit have not helped the French manufacturing sector which has contracted for the third straight month in May, even if the reading was insignificantly higher than expected. The Markit Eurozone Manufacturing PMI posted a three-month low in May. The euro area has stuck in stagnation and France has joined Greece as a main concern.

Mario Draghi’s policy did not prevent the widening of the economic gap between Germany and France. PMI data shows that both the imbalance between the two countries and Germany’s power within the monetary block have increased. From the latest PMI data one can conclude that the cheap euro improves German economy while it cannot prevent France from falling further behind. While Germany’s ruling elite are voicing a vehement opposition to the ECB’s policies, it is absolutely clear that the Paris Establishment are not amused by the result. Continue reading