Download Report

Global manufacturing activity broadly follows three-year cycles. The cyclicality of the Eurozone economy means it is no exception to this rule of thumb, because its own cycle tracks the global one closely. 

Since 2000, however, the down leg of the European cycle massively undershot that of the global one on two occasions: During the Debt Sovereign Crisis and today. In both cases, the Euro Area manufacturing PMI collapsed, dipping below 45, but the global manufacturing PMI teetered near the 50 boom/bust line.