Germany in particular suffered a sharp fall to 44.1 to a 6 year low helping to drag the rest of the EU down when it comes to manufacturing. Whilst the European Commission may have predicted growth of 0.2% for 2019 in Italy, the Organisation of Cooperation and Development are expecting a contraction of -0.2% highlighting a far from certain outlook for Italy and the Euro.

The only positive for the EU is that there has been a small improvement in China’s manufacturing data which bodes well for the global economy. Whilst China is holding on to growth it appears that the EU outlook is worsening which could see euro weakness going forward. The EU appears to be bearing the brunt of the global slowdown amidst concerns of a disorderly Brexit which too is hurting confidence.

Such a change could be seen as a negative for the Euro. It has been reported that it will seek to offer more cheap loans which it hopes will filter into the economy as liquidity but whether that will be enough is beginning to look doubtful.

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