Summary: The latest data out of Europe shows the economy in the euro zone continuing to expand and suggests that we are probably in a technical recovery. In Europe, however, the threat to recovery is to the downside, whereas in the U.S. the main threat is to the upside in the form of asset bubbles.
According to Markit’s Manufacturing Purchasing Manager’s Index released this morning, the eurozone’s manufacturing sector expanded for the fourth month on the trot. While the PMI was still a relatively weak 51.3 in October, up from 51.1 in September, 50.0 is the demarcation line between expansion and contraction. Only Greece and France saw readings below 50.0, demonstrating that the cyclical upturn is widespread.
At the same time, economic data from the U.K., the U.S. and C...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.