The economies of Europe are split in an interesting way.
So-called “Core” Europe (Germany and France) are sputtering while peripheral Europe (the countries that had the worst of it in the crisis) continue to strengthen.
We just got the latest Eurozone Flash PMI report, showing the state of industry across the region. This is the basic chart summing it up.
The chart basically speaks for itself. Germany and France are fizzling. Especially France, whose economy is such a mess. With its reading coming in sub-50, it’s a sign that French industry is contracting again. And yet the green line the rest of Europe as at its highest level since before the financial crisis.
So once again, there’s no one Eurozone economy. Not surprisingly, the Germany-dominated ECB is currently in easing mode, which it hesitated to do for so long while Core Europe was riding high, and peripheral Europe was suffering.