On Monday, the 2nd of September 2019, a business survey conducted by a perspicacious bunch of analysts, economists alongside industry export had shown that a spurring acrimony between the world’s first- and second-largest economy had started off to take death tolls on global economy after toiling trillions of euros over the past year building a strong case for global policymakers to unleash fresh fiscal stimulus in order to head off a horrendous economic outlook across the globe.
In point of fact, as a fresh escalation of Sino-US trade spat was emerged into light earlier last week, the export-oriented German economy heavily reliant on Chinese exports had been contracted last month, while the euro zone’s factory activity was dented for straight seven months in August, which in effect prodded investors’ optimism over fresh fiscal stimulus in a near-term outlook, though Germany, the largest economy of EU and the fifth-largest in the world by nominal GDP, had brushed aside possibilities of a financial aid package later last month.
Aside from that, euro zone’s IHS Markit’s Purchasing Managers’ Index for August had hit its lowest level since December 2012, while the flash reading of a PMI of 47.0 had been pointing towards a technically recessed economy.
Concomitantly, adding that a sharp turnaround of the bloc’s economy was highly unlikely amid no sign of shine on Sino-US trade warfare saga, an economist at Capital Economist, Andrew Wishart said on Monday (Sept. 2nd), “The big picture is that manufacturing is on track to contract for a second consecutive quarter, and a meaningful recovery is unlikely given the ongoing struggles of global manufacturing.
And while the euro zone equivalent ticked up, it points to manufacturing output from the bloc continuing to contract. ”