{"id":1634969,"date":"2022-09-07T08:04:01","date_gmt":"2022-09-07T12:04:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1634969"},"modified":"2022-09-07T08:04:11","modified_gmt":"2022-09-07T12:04:11","slug":"europe-bracing-for-recession-as-people-struggle-with-increasingly-high-cost-of-living","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/europe-bracing-for-recession-as-people-struggle-with-increasingly-high-cost-of-living\/","title":{"rendered":"Europe Bracing for Recession as People Struggle With Increasingly High Cost of Living"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Feurope-bracing-for-recession-as-people-struggle-with-increasingly-high-cost-of-living%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1634969&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><a href=\"https:\/\/www.theepochtimes.com\/t-europe\">Europe<\/a> is showing signs of heading into a <a href=\"https:\/\/www.theepochtimes.com\/t-recession\">recession<\/a> as multiple economic surveys show the region\u2019s services and manufacturing sectors slowing down while a large number of the continent\u2019s citizens are struggling to cope with rising prices.<\/p>\n<p>The S&#038;P Global Eurozone Composite Output Index fell to an 18-month low in August at 48.9, according to a Sept. 5 news release (<a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/46160a1455bc48cca6489ef02f14c0ac\">pdf<\/a>).<\/p>\n<p>The eurozone private sector \u201cmoved further into contractionary territory\u201d in August. Both services and manufacturing output fell for the month. The Composite PMI Output Index for <a href=\"https:\/\/www.theepochtimes.com\/t-germany\">Germany<\/a>, the largest economy in the eurozone, was at a 27-month low of 46.9. In France\u2014the second largest economy of the region\u2014the index was at a 17-month low of 50.4.<\/p>\n<p>The S&#038;P Global\/BME Germany Manufacturing PMI was at a 26-month low of 49.1 in August. There was a \u201csustained sharp downturn\u201d in new orders which weighed on production levels and slowed the rate of factory job creation, another S&#038;P survey stated (<a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/c4b014915a44408db1e27416aa8ac54e\">pdf<\/a>).<\/p>\n<p>The country\u2019s services sector saw activity fall for the second consecutive month in August, with employment growth at an 18-month low (<a href=\"https:\/\/www.pmi.spglobal.com\/Public\/Home\/PressRelease\/2822d79669df4df091f79f331c60b286\">pdf<\/a>).<\/p>\n<p>In France, production levels fell for a third consecutive month. Though inflationary pressures cooled down, firms were buying fewer inputs due to high prices. The service sector saw a decline in new orders.<\/p>\n<p>\u201cThe PMI surveys signal that the euro area is entering recession earlier than we previously thought, led by its largest economy Germany, and we now see the euro area \u2018enjoying\u2019 a longer, three quarter recession,\u201d Peter Schaffrik at the Royal Bank of Canada told <a href=\"https:\/\/www.reuters.com\/markets\/europe\/europe-heading-recession-cost-living-crisis-deepens-2022-09-05\/\">Reuters<\/a>.<\/p>\n<p>The dismal economic data comes as people across Europe are struggling with inflation. A recent poll (<a href=\"https:\/\/www.moreincommon.com\/media\/zunfuthg\/more-in-common-sept-2022-cost-of-living-survey-comparative.pdf\">pdf<\/a>) published by the nonprofit organization More In Common found that only 20 percent of people in Germany were \u201ccoping fine\u201d with rising prices. In both France and Poland, only 5 percent admitted to the same.<\/p>\n<p>In Germany, 64 percent expect to cut down on home heating this winter due to high energy prices. It was 60 percent in France and 50 percent in Poland.<\/p>\n<h2>Germany Slowing Down<\/h2>\n<p>The German government has announced a 65 billion euro ($64.3 billion) spending plan aimed at shielding citizens and businesses from rising inflation. However, some economists do not see any positive effect coming from the move.<\/p>\n<p>\u201cThe relief package cannot change the fact that Germany has become poorer as a net importer of energy,\u201d Commerzbank chief economist Joerg Kraemer told <a href=\"https:\/\/www.reuters.com\/world\/europe\/germany-heading-recession-despite-new-relief-plan-economists-2022-09-05\/\">Reuters<\/a>.<\/p>\n<p>\u201cCompanies have to cut back on the use of energy, which has become expensive, and cut their production accordingly,\u201d he said. Kraemer is expecting Germany to \u201cslide into recession in the autumn.\u201d<\/p>\n<p>Germany\u2019s <a href=\"https:\/\/www.theepochtimes.com\/russias-gazprom-shuts-down-nord-stream-1-pipeline-indefinitely-gas-prices-soar-in-germany_4708396.html\">reliance on Russia<\/a> for natural gas has put it in a tough spot as gas prices soar uncontrollably. Before Russia\u2019s war with Ukraine, over 55 percent of German gas was procured from Moscow. On Aug. 29, gas prices in Germany exceeded 1,000 euros per megawatt-hour for the first time.<\/p>\n<p>A Reuters <a href=\"https:\/\/www.reuters.com\/markets\/europe\/german-economy-likely-already-recession-will-last-three-quarters-2022-09-02\/\">poll<\/a> of economists predicts Germany will have three consecutive quarters of negative growth, beginning this quarter. The country\u2019s gross domestic product in the second quarter of 2022 remained flat when compared to the first quarter.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-naveen-athrappully\"><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Europe is showing signs of heading into a recession as multiple economic surveys show the region\u2019s services and manufacturing sectors slowing down while a large number of the continent\u2019s citizens<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1634969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1634969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1634969"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1634969\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1634969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1634969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1634969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}