[OPE] Double dipper recession now less likely in Europe

Eurozone economic activity surges
By Ralph Atkins in Frankfurt
FT October 23 2009

Eurozone private sector economic activity grew at its fastest pace for
almost two years in October, according to a closely watched survey, but
other evidence suggested Germany's recovery is starting to disappoint.
Purchasing managers' indices for the 16-country region showed output
expanding for a third consecutive month and with the largest gain since
December 2007. That suggested the growth rebound seen in the third quarter
has continued into the final three months of the year. (...) Economists said
the latest survey results remained consistent with a gradual economic
recovery, and were unlikely to result in the European Central Bank altering
its highly cautious outlook - although Axel Weber, Germany's Bundesbank
president, this week described a "double dip" recession as "very unlikely".
In October, the composite purchasing managers' index, covering industry and
services, rose to 53.0 from 51.1 in September. "The eurozone economy has
entered the fourth quarter on a strong note, with growth accelerating in
both manufacturing and services. The data are consistent with GDP rising at
a quarterly rate of around 0.4 per cent in October," said Chris Williamson,
chief economist at Markit, which produces the survey. "Reassuringly, job
losses also slowed, and forward-looking indicators such as service sector
confidence and manufacturing order-to-inventory ratios suggest that the
labour market could stabilise early next year." The survey showed the rate
of fall in employment eased in October compared with September, but remained
high by historical standards.
http://www.ft.com/cms/s/0/8c3dd43e-bfb0-11de-aed2-00144feab49a.html

Industrrial new orders index
http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-23102009-AP/EN/4-23102009-AP-EN.PDF
Industrial production index
http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/4-14102009-AP/EN/4-14102009-AP-EN.PDF

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Received on Sat Oct 24 12:21:49 2009