As economic challenges deepen across Europe, the Flash PMI reveals a decline in German business activity, marking a complex start to the year. With the headline index dropping to 44.2, the contraction is evident, and in France, the Flash PMI hints at a potential Q1 contraction at its lowest in four months.
Adding to the economic complexities, the UK faces a critical situation, with more than 47,000 businesses on the brink of collapse. A staggering 25% surge in businesses experiencing “critical” financial distress in the final quarter of 2023, as reported by insolvency specialists Begbies Traynor, underscores the severity of the situation. The construction and property sectors are significantly impacted, contributing to the overall rise in financial stress among UK businesses.
These interconnected challenges underscore the intricate economic landscape in Europe, emphasizing the need for comprehensive strategies and measures to navigate the uncertainties ahead.
Sources:
piqsuite.com/reuters/german-business-activity-deteriorates-in-jan-pmi
Flash #PMI for #France signals economy likely to contract again in Q1. At 44.2, the headline index was down from 44.8 in December, its lowest for four months and indicative of a steep contraction in business activity. t.co/Yqud6SI3pO pic.twitter.com/cfU8aOvapM
— Chris Williamson (@WilliamsonChris) January 24, 2024