All Fall Down

471 views

Published on

Published in: Economy & Finance, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
471
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

All Fall Down

  1. 1. All fall down A broad-based contraction is well under way in Europe Nov 6th 2008 From The Economist print edition Kadi Saviauk EP1
  2. 2. Main topics <ul><li>The indicators of European economy </li></ul><ul><li>Credit drought cramps consumer spending, business investment and exports </li></ul><ul><li>Banks are being more selective about loans </li></ul><ul><li>Crumb of comfort for euro-zone firms </li></ul>
  3. 3. The indicators of European economy <ul><li>The region was already struggling before the financial crisis </li></ul><ul><li>GDP dropped </li></ul><ul><li>There is worse to come: </li></ul><ul><li>Purchasing managers´ index dived from 46,9 to 43,6 (score below 50 indicates the economy is shrinking) </li></ul><ul><li>Measure of economic sentiment slumped to a 15-year low </li></ul><ul><li>GDP-growth forecast slashed from 1,5% to 0,1% for 2009 </li></ul>
  4. 5. Credit drought cramps consumer spending, business investment and exports <ul><li>Household spending shrank in each of the year’s first two quarters </li></ul><ul><li>Retail sales fell by 1,6% in the year to September </li></ul><ul><li>New-car sales fell to their lowest level in October since 1997 </li></ul><ul><li>Orders to European firms have cooled down </li></ul><ul><li>Exports had been hurt by the downturn in Britain and America, the euro-zone’s two largest overseas markets. </li></ul>
  5. 6. Banks are being more selective about loans <ul><li>Banks scale back their balance-sheets </li></ul><ul><li>Bank loans to non-financial firms rose by 12,1% in the year to September </li></ul><ul><li>Lenders may look to strengthen ties with their more solid customers at the expense of retailers, property developers and private-equity firms </li></ul>
  6. 7. Crumb of comfort for euro-zone firms <ul><li>The currency has plunged against the dollar </li></ul><ul><li>The long preceding period of euro strength may have left European firms stronger </li></ul><ul><li>European firms have been quicker to gain a foothold </li></ul>
  7. 8. Thank You for Your attention!

×