Sound bites: Eurozone in dire duress

The Eurozone services sector remains in dire duress. Germany remains the one exception of positive economic activity, but everywhere else is sliding deeper into a sink hole of negative growth. The Eurozone remains subsumed by aggressive recession forces that look likely to extend all through 2013. It is going to take a much bigger policy spade to dig the Eurozone out of this mess. The ECB will be bound to consider more monetary stimulus measures at this week’s policy meeting. An interest rate cut is probably ruled out  this week. It would smack of a panic more too close to the Italian political crisis. Considering another rate cut soon will definitely be on the discussion agenda though. The ECB need to consider throwing the kitchen-sink of monetary expansion at this deepening economic crisis. Rising unemployment, falling new orders and economic confidence in deepening distress bear all the hallmarks of some Eurozone economies being irreparably damaged for years. Greece, Portugal, Ireland, Spain and Italy all fall into this camp in the next few years.

Highlights

Markit Eurozone Feb Final Services PMI 47.9 (47.3 Flash, 48.6 Jan)

German Feb Final Services PMI Index 54.7 (Flash 54.1, Jan Final 55.7)

French Final February Services PMI Rises To 43.7 (Flash 42.7, Jan Final 43.6), 2nd-Lowest Since March '09

Italy Feb Services PMI Falls To 43.6 (Jan 43.9, Forecast 43.6)

Spain Feb Services PMI Falls To 44.7 From 47.0 In Jan, First Monthly Drop Since September

Irish Feb Services PMI Drops To 53.6 From 56.8 In Jan, Lowest Since August 2012 Markit estimates euro zone GDP will shrink 0.2% in Q1