Europe Heads for Stagflation – WSJ

Bad news for Europe’s economy keeps coming, and when you’re in America, resist the temptation to hurt yourself. Data released on Tuesday suggests the euro zone is in or about to be in recession and the timing for the bloc of American allies and trading partners couldn’t be worse.

The composite purchasing managers’ index (PMI) by S&P Global came in at 49.2, down from 49.9 the previous month. Anything below 50 means a decline, so business activity has been down for two months and is now at an 18-month low. Services firms posted a barely expansionary read at 50.2, the lowest in 17 months, and manufacturing output is in recession territory at 46.5, despite some recent improvement.