AS THE PERIPHERY SINKS, THE CORE FOLLOWS….

"Now this is starting to get really interesting.   Today’s flash PMI in Europe was a disaster.  Not only are the periphery countries predictably weak, but we’re seeing the weakness seep into the core.  The following from the Markit report summarizes the situation:

“The Markit Eurozone PMI Composite Output Index fell to a five-month low in April, according to the preliminary ‘flash’ reading which is based on around 85% of usual monthly replies. The index fell
for the third month in a row to 47.4, down from 49.1 in March, to signal a faster rate of decline of private sector economic activity. Output has fallen seven times in the past eight months.

Output fell at the fastest rates for five months in both manufacturing and services, with the former
seeing the steeper rate of decline.

By country, growth slowed to only a very modest pace in Germany, showing the weakest expansion
in the current five-month sequence as weak service sector growth was offset by a sharp decline in manufacturing output. France meanwhile saw output fall for the second month in a row, with the
rate of decline accelerating to the fastest since October. Falling manufacturing output was
accompanied by a steep deterioration in service sector activity.

at  http://pragcap.com/as-the-periphery-sinks-the-core-follows