By: Sara Patterson
Although the GDP in the Eurozone rose 0.8% in the first quarter, new reports reveal that it rose just 0.2% in Q2 2011, the worst performance in the region since late 2009. Analysts had predicted that the region’s GDP would expand by 0.3%, though in today’s shaky economy, even small shortcomings can further shake consumer confidence (which is already at a near-historic low) and can have dramatic ramifications on the global economy.
European manufacturing growth diminished in July, following an unexpected reduction in industrial output in June. Impending budget cuts in Italy and Spain which will undoubtedly curb consumer spending did little to quell consumer concerns. In Asian trading today, the Euro declined from its three-week peak against the Dollar, and European stocks fell for the first time in four sessions. All told, increasing concern about the spreading debt crisis has caused dramatic lows in the European markets in the past two months, with the Stoxx Europe 600 Index slumping 11% and the DAX Index declining 15% in the past 2 months alone.