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German voters will go to the eurozone economy on his knees this weekend.
In just the last sign of the malaise that the continent seizes, the closely viewingly viewed purchasing managers index (PMI) of activity in the block with one currency came in at 50.2.
That was only marginal above the 50-year-old closing line between growth and decline and underlined the parlous of the eurozone economy.
Germany, which has elections tomorrow, clocked 51, but in France the lecture dropped to a gloomy 44.5 – the lowest since September 2023.
The findings suggest that Germany can at least see signs of a recovery, even if the economic crisis is deepened in France.
In Great Britain, the index of the activity of the private sector fell to a lowest point in two months of 50.5 while companies lowered jobs and praised prior to the tax increases in April.
Under pressure: ECB boss Christine Lagarde (photo) has indicated that inflation in the service sector should be brought under control before the victory can be explained
Matthew Ryan, head of the market strategy at the global financial service provider Ebury, said that the reports 'point to stagnation' in the UK and the euro zone.
Prices are also rising for both economies, making it more difficult for central banks to lower interest rates to stimulate demand and to stimulate growth.
Christine Lagarde, the president of the European Central Bank that determines the interest rates in the eurozone, has indicated that inflation in the service sector must be brought under control before the victory can be explained.
Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said that the PMI report shows: “This is definitely not the case.”
He added: 'Economic output in the eurozone is hardly any movement.
'The somewhat milder recession in the production sector is only over -compressed by the hardly noticeable growth in the service sector.
'There is certainly hope for a German government that will be able to act after the elections, which would also have to offer a positive boost for the eurozone as a whole. However, this is compensated by a relatively unstable situation in France and an American customs policy that spreads uncertainty.
“These figures therefore do not yet point to a recovery in the euro zone.”
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