by Calculated Risk on 5/02/2005 03:18:00 PM

Financial Times Reports: Eurozone manufacturing data point to slowing growth.

Manufacturing in the eurozone contracted in April for the first time in 20 months, highlighting the scale of the economic slowdown across the region and adding to fears that some member states might even be facing recession, according to a survey on Monday.

And its not just Germany. "France and Italy experienced a particularly sharp deterioration."

Nevertheless, the sharp fall in the French manufacturing outlook was particularly worrying, economists said, because France's economy had been among the best-performing in the eurozone, buoyed by a strong housing market and government incentives for consumer spending. “France was supporting the eurozone. Now it is significantly less supportive,” he said.

UPDATE: See "David K. Smith Is Bearish On Britain" at Macroblog.

"An unseasonable chill has descended on the economy. Britain’s once-rampant consumers are minding the pennies, proof to me at least that there is a link between the housing market and people’s willingness to spend. The flatter the former, the more subdued the latter."

More at Macroblog ...