Tue Apr 4th, 2006 at 11:51:38 AM EST
New figures show, yet again, that the Europes protectionistas are stuck in the 20th century. Refusing to yield to the irrefutable logic of globalism the unreformed economies of the continent have increased the rate of manufacturing growth.
The manufacturing index jumped more than expected, from 54.5 in February to 56.1 in March, indicating the fastest growth rate since September 2000.
Growth last month was led by Germany, “in particular the dynamism of its export sectors”, said Kevin Gaynor, economist at the Royal Bank of Scotland, which compiles the indices with NTC Economics. (FT.com)
Refusing to follow the enlightened Anglo-Saxon economy of the UK, which saw a clear reduction in the rate of growth, the economies of the ill-conceived Eurozone are threatened with another quarter of strong expansion in the old-fashioned manufacturing sector.
The survey also provided evidence that the eurozone recovery is broadening, with the employment situation the best for five years. That offers hope that the industrial recovery will eventually feed through into consumer spending. A pick-up in eurozone consumer spending, especially in Germany, would mark a transformation in the region’s economic prospects, after several years of sluggish growth.
Germany recorded the strongest growth in manufacturing jobs among the eurozone’s four largest economies last month, according to Monday’s survey. But the pick-up in eurozone manufacturing employment remains modest and official German employment and unemployment data have not shown any significant improvement in recent months.
Luckily France - where brave reforms are being resisted by the blinkered fears of the lumpen masses - isn't suffering the same fate, partially because "social unrest over the French government’s plans to reform youth employment laws had hit consumer confidence."