Earlier today, European Central Bank commissioner Ewald Nowotny warned that the euro zone recession in 2013 could be even worse than the -0.1% growth expected. A slew of preliminary data from this month’s Purchasing Managers Index data, which measures business activity, suggest Nowotny’s right.
That hints that, as we expected, the interest rate cut from the ECB isn’t helping—something that Chris Williamson, chief economist at Markit, which publishes the PMI data, calls out as well. “The ECB’s quarter-point cut in interest rates seems to have done little to inspire confidence that the economy will start to pick up again,” wrote Williamson (pdf). “[R]ecovery remains a long way off still and…policymakers need to do more to stem the downturn and revive growth.” Here’s a roundup of the charts illustrating that gloomy outlook: