The EuroZone slides deeper into recession and even Germany slows
08/15/2012 4:01 pm EST
The decline in growth for Italy (down 0.7%), Spain (down 0.4%) and Portugal (down 1.2%) was enough to pull the EuroZone economy as a whole down to a 0.4% decline from the second quarter of 2011.
The worry going forward is that the EuroZone’s two biggest economies will join the recession. France reported flat growth for the quarter, better than the 0.1% contraction that economists had expected. German investor confidence dropped in the most recent reading to the lowest level since December 2011. Industrial production in the EuroZone fell by 0.6% in June from the May level according to data reported today. Output was down 2.1% year over year. Those numbers aren’t good news for the exporting industrial sector of the German economy.