19 Million People Now Jobless in the Eurozone
Monday, March 4th, 2013
By Michael Lombardi, MBA for Profit Confidential
Troubles in the eurozone could be here to stay.
The unemployment rate for the eurozone increased to 11.9% in January 2013—up from 11.8% in December of 2012. (Source: Eurostat, March 1, 2013.) Almost 19 million people are jobless in the eurozone.
The European Commissioner for employment and social affairs, Laszlo Andor, summed up the situation very clearly. He said, “Such unacceptably high levels of unemployment are a tragedy for Europe and they signal how serious of a crisis some eurozone countries are in.” (Source: Financial Times, March 1, 2013.)
Manufacturing in the eurozone is suffering, showing a continuous economic slowdown. The Purchasing Managers’ Index (PMI) showed a reading of 47.9 in February 2013—unchanged from January and deteriorating for the 19th consecutive month. (Source: Markit, March 1, 2013.) Any PMI reading below 50 represents contraction in the manufacturing sector.
Looking forward, as the economic slowdown deepens in the eurozone, I am focusing on stronger nations, such as Germany and France. They held their act together in the previous economic slowdown. But they are starting to deteriorate now, as the crisis in the region worsens.
France, the second-biggest economic hub in the eurozone, had a 10.6% unemployment rate in January.
- Double Your Money Twice a Month?
Hottest stock-picker on the planet could make you richer 92 times! Over the past five year period, 86% of the stocks we picked made money—92 winners out of 107 picks! Average straight profit per pick: an amazing 54.1%!
Click here now!
In Germany, consumer demand seems to be declining. New car registration in the biggest economy in the eurozone dropped 8.6% in January from a year earlier. (Source: Wall Street Journal, February 19, 2013.) France, Italy, and Spain also witnessed declines in new car registrations of 15%, 18%, and 9.6%, respectively.
Unfortunately, as the eurozone’s economy continues to head in the wrong direction, the consequences will be felt here in the U.S., and they will hurt America’s prospects for economic growth.
Dear reader, don’t forget that 40% of the S&P 500 companies do business in the eurozone. The continuous economic slowdown in the region will put a significant dent in their profitability. While the stock market may be reacting opposite to this, when the panic strikes, investors usually rush out of the markets very quickly. Investor beware!
Where the Market Stands; Where it’s Headed:
I continue to believe the stock market is putting in a top. I see the risk outweighing the rewards of investing in stocks at this point. Bullishness and optimism about the stock market is getting close to 2007 levels—and we all know what happened after that.
What He Said:
“I personally expect the next couple of years to be terrible for U.S. housing sales, foreclosures and the construction market. These events will dampen the U.S economic picture significantly in the months ahead, leading to the recession I am predicting for the U.S. economy later this year.” Michael Lombardi, PROFIT CONFIDENTIAL August 23, 2007. Michael was one of the first to predict a U.S. recession, long before Wall Street analysts and economists even thought it a possibility.
This is an entirely free service. No credit card required.
We hate spam as much as you do.