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Old Europe's economy is stuck in the past.

by Colman 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."

Not to worry, all is going according to specs:

French consumer confidence declines

A fall in French consumer sentiment has been partly blamed by analysts on the protests raging over the government's proposed youth employment law. Insee, the national statistics bureau, said its gauge of consumer confidence fell from minus 24 in February to minus 26 in March.

Cold blamed for German jobless rise

Bitterly cold weather in March, which deterred construction groups from hiring workers, unexpectedly pushed up the number of Germans out of work this month. The Federal Labour Office said seasonally adjusted unemployment rose 30,000, nudging the unemployment rate up from 11.3 per cent in February to 11.4 per cent in March.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Tue Apr 4th, 2006 at 12:26:09 PM EST
They're just laying down a smoke screen. Please note the nationality of the "institute" quoted here by the FT :

The resurgence of Germany and the emergence of China mirror, in part, the changes that have occurred in the global economy during the past 10 years. In a detailed study, the French research institute Ifri notes how some parts of the new economy, which drove world exports in the 1990s, have since been growing more slowly than total world trade, while old-economy sectors such as equipment and chemicals have been particularly dynamic.

Yet beyond the cyclical behaviour of certain industries, Ifri attributes the reversal in favour of old-economy sectors not only to the collapse of the internet bubble but, more significantly, to the rapid integration of certain emerging countries into world trade.

French propaganda, obviously.

(Posted by Fran in the European Breakfast).

by afew (afew(a in a circle)eurotrib_dot_com) on Tue Apr 4th, 2006 at 02:46:18 PM EST

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