Europe, the continent that now appears to be in major difficulties due to high fiscal deficits in several of their economies, has also reflected an auspicious recovery of its manufacturing sector. Thus, in the case of manufacturing PMI for the eurozone in March, the data show that the indicator rose to 56.6 points from the 54.2 achieved in February. The importance of this result lies in the fact that it is the highest reading achieved since November 2006. The recovery of manufacturing in Europe has even been to Spain where the PMI rose in March of 51.8 points, compared to 49.1 in February, reaching its highest level since August 2007. The manufacturing recovery has other positive implications for Europe as it is a strong generator employment, while contributing to the recovery of tax revenues in the European economies, creating a red-needed relief to the tax numbers in the region. Learn more about this with National Labor Relations Board.
Of course this good news does not eliminate the need for strong reforms and adjustments that must carry out a number of European economies. The key dynamic we are seeing in the manufacturing sector in the major economies must be sought in the recovery of international trade, which had been severely beaten in the worst of the crisis. “Exports can be a good engine for the industry, so we’re going to see inventories rebuilt,” said Ken Mayland, president of ClearView Economics in the U.S.. The revival of world trade is undoubtedly strong. In fact, global trade has recovered nearly two thirds of the losses since last October 2008, when the crisis deepened in the global economy. This momentum of international trade was driven initially by the policies of stimulus released by the economies with the relaxation of fiscal policy overall, which included tax cuts in many countries that have allowed offset the lower interest rates for savers.
As noted, the world economy has slowly entered a virtuous circle, which will last as long as they may contain various risks latent in several regions of the planet. But that recovery can be sustainable over time and the global economy does not suffer relapses, the leading countries should seriously evaluate the possibility of cooperation in their economic policies to gradually reduce global imbalances. The acceleration of the recovery in global manufacturing, in addition to more vigorous economic recovery, improving the outlook for international commodity prices, particularly of energy and mineral commodities. International prices of these commodities can be further strengthened with the gradual normalization of the situation in Europe that the euro will strengthen against the U.S. dollar. Is it time to return to bet on commodities? Horacio Pozzo ——- ——– INVESTMENT OPPORTUNITY You can invest in the stock market in the U.S. and earn extra income. Are you tired of not knowing where to invest your money? What industry, what company in what market, what time? Tired of paying high commissions to portfolio managers or portfolio managers that he has lost money consistently over the past two years?