The Eurozone's economic woes deepen as France, the region's second-largest economy, slides further into industrial recession. Despite heavy debt-financed stimulus programs, the French manufacturing sector's performance continues to deteriorate. According to preliminary data, the HCOB France Manufacturing PMI dropped to 44.1 in July 2024, far below market expectations of 45.8. This marks the 26th consecutive month of declining output and the sharpest contraction since January.
Weak sales and customer delays are the main culprits behind the downturn, leading to significant reductions in new orders and workforce numbers. Additionally, manufacturers are grappling with rising input price inflation.
The call for economic reform and rational policy-making is more urgent than ever to restore competitiveness and avert further decline.
What about totism industry there? Is it doing well? I've known France for a very good tourist destination.
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Tourism has the problem that it depends on purchasing power abroad. here where I am, in Andalusia in Spain, every third euro is earned in the tourism sector. and we are feeling the crisis in northern Europe very clearly here.
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The ghosts of stagnating activity and persistent inflation are still visible in France and in Germany too. Both of these economies are facing very much the same things! Currently France is hosting a very big event in Olympics which was touted to boost tourism and uplift the financial condition of France but there are no certainties on this happening, leading to concerns around it being a failure in the economic aspect of things.
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just the model of the modern olympic games and its implicit economic demand activity, shows that all economic thinking, especially in the eurozone in this socialist grand experiment, is pure keynesianism. and we know from experience and from logical thinking that demand impulses produce nothing but inflation. keynesianism, and thus the entire european economic policy, is the infantile attempt at control, which has ended up favoring a political parasite caste at the expense of the middle class.
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@TomK, I feel you are always giving us some doom and gloom. First Germany, now France. Are they working on the reforms in any way?
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i will praise these economies to the skies if even once a market economy reform, freedom rights are implemented or the sovereignty of the individual is realized. until then, unfortunately, there is the sad truth from the eurozone, which has become a socialist grand experiment. Communism was not developed in Europe for nothing, France and Germany, those who are implementing the Davosian catastrophe agenda one-to-one, are the modern representatives of a rainbow Stalinism that would have made even Karl Marx look pale.
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It needs to go back to a free market. The eurozone is nice, but it needs to be separated a little more, so each country can take care of their own finances.
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20 sats \ 1 reply \ @TomK OP 25 Jul
the problem with the eurozone is fundamental. there is no demonstrable monetary union of such diverse economies that has ever worked. the euro died in the great financial crisis of 2008-2009 and has been in intensive care ever since, being kept alive with ever more fresh liquidity and the purchase of government bonds by the ECB. if you ask the people, especially in southern europe, the enthusiasm is zero - the experiment will fade away and we will all see it happen
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It is only a matter of time. Tying everything together was not a good idea, because each economy is so vastly different. The quality of life in Germany is different from the quality of life in Greece.
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Pessimism is a human bias. You're either smart enough to detect this bias in your own thoughts or you're not.
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and if you now understand the influence of the mainstream media on your own bias, you're on to something. Europe's numbers are clearly recessionary. It's other people's job to make things look good, I'm a realist and look at things as they are.
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No shade man. I'm not a fan of europes economic policies either. But at some point you have to reflect whether you're being realistic or just just giving in into compulsive pessimism or whether you're doing clickbait on purpose. Nothing wrong with the latter but at least be honest with yourself.
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Interesting way of thinking of things...
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If you find the description of a recession tendentious, then you are in for a big surprise in the next few years.
But let me ask you another question: instead of spreading accusations here, can you derive anything positive from the eurozone economy? show me what's going well these days
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If you find the description of a recession tendentious, then you are in for a big surprise in the next few years
bears have predicted the last 10 out of 2 recessions. They happen every few years - you're not giving any insight whatsoever acknowledging that it will someday happen
can you derive anything positive from the eurozone economy? show me what's going well these days
Nice trap you're setting up there
We're dominating in aviation industrials. Mistral can almost keep up with american AI companies despite draconian overregulation. All cutting edge chips in the world are made with ASML lithography machines - literally a monopoly in one of the most important industries on earth. The CAC40 is at all time highs. The DAX40 is at all time highs.
It's by far not a rosy picture overall. But of course "anything" positive exists. "anything" is a low bar
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if you are seriously presenting me with stock indices as the state of the real economy, then you are just showing that you are conflating liquidity aspects with real economic aspects. think about that point very carefully and think about what we are all writing here about liquidity and central bank policy
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Are you saying money isnt worth the paper it is printed on?
Sounds like the fake news trump pouts about.
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Viv La France!!
I've learnt this in school. There was a story from Alphonse Daudet!
I believe that France is beautiful country with beautiful people but current political scenes from there are not very promising!
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Davos is killing us over here
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Are you referring to WEF?
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Yep
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France, the region's second-largest economy...
Well, there's your problem.
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