Standard and Poor's aiming to downgrade World and themselves..?

Standard & Poor's may downgrade the triple-A ratings of six European nations including Germany, according to the Financial Times in its online edition Monday. 


The ratings agency will review the triple-A ratings of Germany, France, the Netherlands, Austria, Finland, and Luxembourg, and lower them to a AA+ if reviewers are not convinced that European policymakers are making enough progress to justify the ratings, FT reported. 


S&P is expected to release its announcement of the review later Monday


It seems with this action there will be a time when every thing and all is degraded by Standard and Poor's will downgrade to the Sub prime category. Is it sensationalism, unrealism and Selling Fear. 
It seems there are many buyers of Fear now than Greed. 
What is Sold that is Made..! 

Euro Zones End Game.. Surgery or contagion .. Next Week

The G20 and World Central Bankers League have been pushing the World economy out of the hole of depression from 2008. The Lehhman Crisis culminated into the Landmark of its Own. While US interest rate buried underground, the ' Free Money ' streamed into Hard Assets and New Gold Investment Wave is ebbing the world. The American easing and Housing Crisis:  emboldened $ bears to press the panic Button on $ as Reserve Currency. While barley 15 months ago Euro was pampered to replace the greenback. The fall in dollar had counter effects on Inflation rising and thus devaluation of all other currencies followed the lead,  last year. Which in turn created the another crisis in Euro and particularly cracked the weaker areas of Euro zone. Here came ' PIGS '. The rattle has now turned into a Roar.

A thunderstorm had mean while struck the Central Asian politics. Upheavals in Tunisia, Egypt, Libya, Syria, UAE, Pakistan, Indonesia. While, the Brutal Force of nature hit the Japan, Australia, Indonesia, Peru, Chile and Pakistan. The War in Afghanistan is besieged. The tensions in Iran-US still threaten to blow into a war..?
India stifled by the Inflation, the government is rattled by the Corruption. The opening of retail remains impasse in vogue. 

The 23rd June Joint Action to release the Crude Oil Reserve's successfully derailed the Oil ' rally '. The Rising Bond Market yields is now beacon of the near future. Which is flashing fully Red.

While, China and India are slowing down rapidly. Raising Alarms and Flashing the signals of Global Slow Down. The pace of slow down and its impact is exerting from Europe.

Will Europe disintegrate..? Will Euro as Currency disintegration be averted and  ' Risk ' trade .?

How all this may impact on the Half on S&P 500, dependent on World Trade shall be..?

Next Week, Market will look into future and will Watch the European in Hectic activities.

Merkel - Sarkozy Pact , Timothy Geitner's European Meetings, ECB Meet Thursday, Mario Monti's Italian Budget, Greek Budget and Finally Euro Parliament on Friday may draw Curtains on to Whether Greek remains in Euro Zone. It Seems that resolution is Whether Whole of Europe will suffer from the Either a Surgery or a Contagion of Debt. In short, next week shall be the week when Europe decides How to Suffer.?  and Bear the pain. It seems French want it Slow Death and Germans want a Surgery..!

In either case risk may take a dive in the Sands of Atlantic... and Across the world.

US home sales fall, Wait Bernanke's discourse

August new home sales dropped 2.3% to 295,000. It was in line with consensus expectations and comes after July was upwardly revised to a 302,000 unit pace (was 298,000). The Northeast fell 13.6% to a 19,000-unit pace, likely from Hurricane Irene distortions. However, the South and the West also declined, down 2.4% and 6.3%, respectively. The Midwest had an 8.2% gain to 53,000, the third monthly gain. Total sales are up 6.1% over last August, with the Midwest up 65.5% year over year and the South up 9.3%. The Northeast and the West are down 36.7% and 10.6%, respectively. The months' supply of unsold homes on the market edged up to 6.6 months, near the 6.5-month rate in July and the historic averages of 5.5 to 6 months. The median sales price fell 8.7% in August over last year to $209,100. The report came in about as expected, to likely have a small effect on markets today.


Ben Bernanke Chairman FOMC is to deliver speech tommarow and Would add to Juices of the Fomc meet


Chocolate to the Diabetic :


While, Germans are calling EFSF as the ' Chocolate to Diabetic' and the Greece despise towards the Germans is on Rise. French Leaders are intense in Defacing the EFSF and is the Campaign Issue 

French Bank more downgrade Imminent by Moody's

While S&P appears to have completely forgotten about the country of Belgium, Moody's has realized that should Greece default, which is now inevitable, there may be aftershocks. On June14th 2011, it focused on France, and its three main banks Credit Agricole, SocGen and BNP, all of which it has put on downgrade review with a one notch maximum downgrade potential (except for SocGen which is two). Moody's also refreshed those who care that its downgrade review of Belgium's Dexia is ongoing and could result in a two-notch downgrade. 

From Moody's

Moody's Investors Service had placed the standalone financial
strength ratings and long-term debt and deposit ratings of three
French banking groups -- Credit Agricole SA (CASA), BNP Paribas
SA (BNPP), and Societe Generale SA (SocGen) on review for possible
downgrade.

The primary focus of all three reviews will be the banks' credit
exposures to Greek government debt and the Greek private sector and the
potential for inconsistency between the impact of a possible Greek default
or restructuring and current rating levels. The review of SocGen
will also assess the likelihood of future government support since our
systemic support assumption is currently higher than the average for the
French banking system.

Moody's also noted that exposures to Greece are to be included within
the ongoing review for possible downgrade of Dexia Group's core
operating banks.

The specific rating actions taken today are:

- Credit Agricole SA (CASA): standalone credit strength C+
/ mapping to A2 on Moody's long-term scale, with an
adjusted baseline credit assessment (BCA) of Aa3 and a senior long-term
rating Aa1, all on review for downgrade.

- BNP Paribas SA (BNPP): B-/A1 and Aa2 ratings on
review for downgrade.

- Societe Generale SA (SocGen): C+/A2 and Aa2 ratings
on review for downgrade.

The short-term Prime-1 ratings of the three French banking
groups have been affirmed.

Moody's notes that CASA's and BNPP's reviews are unlikely
to lead to downgrades of more than one notch. SocGen's debt
and deposit ratings could be downgraded by as much as two rating notches
because its review will include a reassessment of the uplift it receives
from systemic support, which is currently higher-than-average
for the French banking system.

A full list of affected entities and ratings can be found at the end of
this press release.

RATINGS RATIONALE

Today's actions reflect Moody's concerns about these banks'
exposures to the Greek economy, either through direct holdings of
government bonds or credit extended to the Greek private sector directly
or through subsidiaries operating in Greece, a key factor for CASA
and SocGen due to their local Greek banks. The magnitude and composition
of these exposures differ substantially across these banking groups.

Potential mitigants to these concerns are the strong financial profiles,
substantial scale and earnings diversification of the French banking groups
covered by this review. Moody's will focus on the potential
impact of various scenarios for Greek government and private-sector
credit exposures on the profitability, capital and funding positions
of these banks.

Moody's may take similar actions on other banks with direct exposures
to Greece in the coming weeks, if it considers that their ratings
may be inconsistent with the potential impact of a Greek default or restructuring.
Additionally, we are closely monitoring the risks that would likely
result from a Greek default scenario, e.g. the potential
impact on weaker countries, the capital markets, and funding
conditions, and are taking those risks into consideration in our
ratings of banks across the Eurozone.

DETAILED RATIONALE AND REVIEW CONSIDERATIONS FOR CASA, SOCGEN AND
BNPP

CREDIT AGRICOLE SA (CASA)

For CASA, the principal direct risk in Moody's view arises
from the group's local subsidiary, Emporiki, and from
its private sector credit exposures in Greece. Indeed on 3 June
2011, Moody's downgraded the standalone credit assessment
and the senior long-term deposit ratings of Emporiki to Caa1 and
B1 respectively, in response to the downgrade of the Greek government.
Emporiki reported a net customer loan book of EUR21.1 billion at
31 March 2011 compared to Groupe Credit Agricole's consolidated
Core Tier 1 capital of EUR50.8 billion. Moody's therefore
considers that the secondary effects of a Greek default scenario could
have a significant impact on the bank, owing to these direct exposures
to the local economy, and the ratings agency's belief that
CASA will continue to provide funding and capital support to Emporiki.
Moody's review will therefore focus on the potential impact of the
various scenarios on the group's profitability, capital and
funding.

Moody's expected the direct impact of a default or restructuring
of Greek government bonds to be limited in the case of CASA, given
the rating agency's view that it has a relatively modest exposure
to such debt (EUR0.6 billion net at 31 March 2011).

SOCIETE GENERALE

Similarly to Credit Agricole SA, SocGen has a majority stake in
a local bank, General Bank of Greece (Geniki), and thus faces
risks from its private sector credit exposures in the country (Geniki
reported a net customer loan book of EUR3.4 billion at 31 March
2011, of which we understand a material proportion relates to multi-national
companies, compared to SocGen's consolidated Core Tier 1 capital
of EUR29.4 billion). Moody's also downgraded on 3
June 2011 the standalone credit assessment and senior ratings of Geniki
to Caa1 and B1 respectively, and the ratings agency believes that
SocGen will continue to provide funding and capital support to its subsidiary.

However a default or restructuring of Greek government bonds would be
more material for SocGen than it would be for CASA, given SocGen's
exposure to Greek government debt, reported to be EUR2.5
billion net as at 31 March 2011, although we understand that this
exposure has since been reduced. Moody's review will therefore
focus on the potential impact of the various scenarios on the bank's
profitability, capital and funding.

Furthermore, in its review, Moody's will also re-assess
the systemic support assumptions currently factored into the long-term
ratings to reflect the post-crisis support environment.
The group currently benefits from a three-notch uplift from its
intrinsic financial strength equivalent on the long-term rating
scale (above average for France), compared to the two-notch
uplift assigned prior to Moody's downgrade of the financial strength
rating on 14 April 2009.

BNP PARIBAS

Unlike CASA and SocGen, BNPP does not have a local subsidiary bank
in Greece and, as such, its relative exposure to the local
economy is more modest. Instead, BNPP's main risk arises
from its substantial direct holdings in Greek government debt: EUR5.0
billion of net exposure as at 31 December 2010, compared to Common
Equity Tier 1 capital of EUR56.6 billion at end-March 2011,
in addition to exposures to other weaker Eurozone countries, e.g.
Portugal (EUR1.9 billion of net government debt exposure as at
31 December 2010).

Moody's therefore expects the review of BNPP's ratings to
focus on the direct and indirect impact of a Greek government debt default/restructuring
on the bank's profitability, capital and funding.

DEXIA

Dexia reported EUR3.5 billion of gross banking book exposure to
the Greek government as at 31 March 2011, compared to Core Tier
1 capital of EUR17.0 billion, and which is part of the group's
total maximum reported credit risk exposure to Greece of EUR5.4
billion at the same date.

In our existing review for possible downgrade of Dexia's three main
operating banks, (Dexia Credit Local, Dexia Bank Belgium and
Dexia Banque Internationale à Luxembourg), opened on 28 March,
2011, we identified three main factors we would consider.

- Dexia's ability to raise long-term funding at a cost that
preserves the economics and the viability of its public finance core business;

- Its ability to continue deleveraging its legacy assets without
adversely affecting the average quality and duration of the bond portfolio
in run-off; and

- The potential impact of Basel III regulations on Dexia's liquidity
management and the group's capitalisation.

We will also consider the potential impact of a Greek government default/restructuring
on Dexia within our review, which we expect to conclude in the coming
weeks. As previously stated at the opening of our review,
we see the potential downside to the A1 long-term senior debt and
deposit ratings to be limited to one or possibly two notches. Our
decision to affirm the Prime-1 short-term ratings was driven
by our expectation that systemic support would be forthcoming for Dexia's
financing needs, as it was in the past.

OTHER BANKS' EXPOSURES TO GREECE AND POTENTIAL SIMILAR ACTIONS

With regard to the other large French banks rated by Moody's --
namely, Banque Federative du Credit Mutuel, Credit Industriel
et Commercial, Credit Mutuel Arkea and BPCE -- the rating agency
perceives their exposures to be lower compared to those of CASA,
SocGen, BNPP and Dexia.

As stated, Moody's will consider similar actions for other
banks, should the rating agency believe that their ratings would
be potentially inconsistent with the direct or indirect impact of a Greek
default or restructuring.

G-7, Communique : Vow to talk and Enjoy Volatality

Agreed terms of reference by G7 Finance Ministers and Central Bank Governors

We met at a time of new challenges to global economic recovery, with significant challenges to growth, fiscal deficits and sovereign debt, stemming from past accumulated imbalances. This is reflected in heightened tensions in financial markets. There are now clear signs of a slowdown in global growth. We are committed to a strong and coordinated international response to these challenges.

We are taking strong actions to maintain financial stability, restore confidence and support growth. In the US, President Obama has put forward a significant package to strengthen growth and employment through public investments, tax incentives, and targeted jobs measures, combined with fiscal reforms designed to restore fiscal sustainability over the medium term. Euro area countries are implementing the decisions taken on July 21 to address financial tensions, notably through the flexibilisation of the EFSF, reaffirming their inflexible determination to honor fully their own individual sovereign signatures and their commitments to sustainable fiscal conditions and structural reforms. Japan is implementing substantial fiscal measures for reconstruction from the earthquake while ensuring the commitment to medium-term fiscal consolidation.

We reaffirmed our shared interest in a strong and stable international financial system, and our support for market-determined exchange rates. Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will consult closely in regard to actions in exchange markets and will cooperate as appropriate.

Concerns over the pace and future of the recovery underscore the need for a concerted effort at a global level in support of strong, sustainable and balanced growth. We must all set out and implement ambitious and growth-friendly fiscal consolidation plans rooted within credible fiscal frameworks. Fiscal policy faces a delicate balancing act. Given the still fragile nature of the recovery, we must tread the difficult path of achieving fiscal adjustment plans while supporting economic activity, taking into account different national circumstances.

We look forward to working with our colleagues in the G20 and the IMF in the coming weeks to rebalance demand and strengthen global growth. As previously agreed, structural reforms will make an important contribution in this regard.

Monetary policies will maintain price stability and continue to support economic recovery. Central Banks stand ready to provide liquidity to banks as required. We will take all necessary actions to ensure the resilience of banking systems and financial markets. In this context we reaffirm our commitment to implement fully Basel III.

What World wants out of father Trichet's Euro..?

Well, the Sir Trichet is a very stubborn Banker and is much too straight forward, than markets wants him to be one.
Cohesive Euro ..?
1)  Monitory Policy..
 From the word Go to European Union, and creation of common currency namely Euro, the World disbelieved its existence and durability. Alan Greenspan, and many other were forthrightly against the idea of an currency without common Monitory Policy and its Instrument that is Bond. The uneven and imbalances were less significant then, were in fact forgotten in mid of last decade when many thought Euro to replace Dollar.

2) Currency de-frags : Euro is now currency for 27 states, but three state viz Germany, France and England still carry there own currencies. Where as the smaller countries are tugging along like an non entity. This is creating  a subordination and discord. The dual Policies within this distort the inter state stresses , disproportionate valuations.

3)  While, ECB agrees to the facts of diversity and disproportion within the Euro Zone, its not ready to accept the reality of the divisive values and uneasy differentiations of the prospects of the growth and economic strangle.

4)  The recent talks between Merckel- Sarkozy, which were expected to bring the realities to the ground, ended with an ' Transaction Tax ', which appears to be the ' Bailing Cost' on European Banks. The Increasing regulations, uneven growth prospects, differential Socio-Political structure and Varied Ambitions mounting the stress and are loading on Franco-German Banks.

   The Unwillingness to issue ' Euro Bonds ' is portraying the all that said and doubted. The stress on smaller Euro nation by the Stronger Economies like Germany and France, may soon become Tyrannical. It seems Euro may soon will have to decide on the issues, than at the point of no return. The concerns of the market and absence of the structural footing are the ' Black Swan ' on the horizons, lurking to surprise inter-connected world and  is a profuse fissure.

Bernanke's Put, European PMI/Debts, Anna Hazare

Goldman Sachs has down graded the Growth prospect for US in Q3 and Q4. The head line news shall rumble as week is entered.

 Anna Hazare's Agitation now elapses a week. The Gritty man and his millions of agitators shall be entering into a crucial phase. The Indian government has barricaded itself with ' Standing Committee' and the Equity markets have been silent watcher or has yet react. It is expected that, Congress who has no political leadership, will find the situation intolerable. The deterioration of Anna's health or that of any other activist, may cause ' Ripples' and cause Infectious consequences. The Parliament is likely to Buzz, the mammoth human rally, across the Length and Breadth of the nation. The Government seems to have ignoring the issue and the costs may rise. The Uncertainty may chase the market and business sentiment. 

Recession Crusader 

Bernanke's Put and Jackson Hole : In the FOMC minutes, FED had immensely elaborated the its options and Mr Bernanke exercised, ' PUT '. The occasion shall be an ideal place to respond the 3 Wise man, who voted against the decision, in last Meet. 2) Mr. Bernanke is likely to Explain the Utility of the ' Declaration of Mid 2013' and may be explicit about the Intentions, of accommodative Policies. 

French- German finance Ministers, shall be meeting on the Tuesday to further shape up the Merkel-Sarkozy accord and its efficacy. European Bank and Its Stake holders appear to have been loosing ' patience' and insecure.


The Flash P.M.I. Survey's may add some ' Glucose' in the early part of the week, on Tuesday

US Data : Economic reports in the coming week include new-home sales Monday, durable goods Wednesday, and weekly jobless claims Thursday. A second reading on second quarter GDP is released Friday, as is consumer sentiment for August.


The end of month data may mixed and markets are likely to reach in oversold zone. 


Its anticipated that, the early part of the week shall remain Weak and Week end GDP nos shall be  a threat. 
Expecting a ' Squeeze Rally ' in between as relief rally.  


My Note : I remain preoccupied with world moving around and making me restless and uneasy. My animal sense is smelling a ' tragedy' in India. 

Eurozone Contracts, Japan In Recession.,

                                                                                                                                                                                                       Eurozone drifts nearer to stagnation in July, as Germany and France slow further and Spain falls back into contraction
                                                              Data collected 12–26 July.
Key points:
.. Final Eurozone Composite Output Index at 22-month low of 51.1 in July (flash estimate: 50.8).

.. Growth led by France, as Germany slows sharply. Contractions seen in Italy and Spain.

.. Further job creation in Germany and France, while pace of losses eased               outside of the big-two.
                                              Output growth slips closer to stagnation

Having eased sharply in each of the previous three months, Eurozone private sector growth moved closer to stagnation at the start of Q3 2011.
The Final Eurozone PMI® Composite Output Index fell to 51.1 in July, down from 53.3 in June. Although above the earlier flash estimate of 50.8, the final reading was still the lowest since September 2009. Activity has risen throughout the past two years.

Output growth eased in both the manufacturing and service sectors in July. Manufacturing production scarcely rose over the month. Meanwhile, the rate of expansion in service sector business activity was the weakest since September 2009.
The slowdown was broad-based by nation. Rates of expansion were the least marked since October 2009 and August 2009 in Germany and France respectively, and well below those seen in the opening quarter of the year. Further contractions were seen in Italy and Spain. In the case of Spain, the rate of decline was the steepest for 19 months.
                                              Nations ranked by output (July)
                                              France 53.2 23-  month low
                                              Germany 52.5 21-month low
                                              Italy 49.1 2-        month high
                                              Spain 46.1 19-   month low



The principal factor underlying weaker output growth was a near stagnation of inflows of incoming new business. Levels of new work slowed on the back of weakening conditions in domestic markets and the first decline in new manufacturing export business (including intra-Eurozone trade) for two years.
The rate of expansion in new business eased sharply in Germany (weakest in two-year period of growth) and also moderated in France (23-month low). Italy reported a further reduction, while Spain saw new orders fall back into contraction with the steepest rate of decline since the end of 2009.


                 Job creation continues in big-two nations, rates of reduction ease in Italy and Spain


Job creation held up comparatively well in light of the slower expansions in output and new business. Employment rose for the fifteenth month running in July, with the rate of increase only slightly below the average for that period. Payroll numbers rose at both manufacturers and service providers.
The slowdown mainly reflected weaker job creation in Germany. However, Germany still reported the strongest increase in payroll numbers overall, followed at some distance by France (which saw a faster rate of jobs growth than in June). Although further losses were recorded in Italy and Spain, rates of decline eased in both nations.
                                             Output price indices by nation


July saw average input price inflation ease further from March’s 32-month high. Slower cost increases were reported in both the manufacturing and service sectors, with by far the sharper easing seen at manufacturers. Cost inflation slowed in all of the nations covered by the survey.

        
                              Japanese private sector activity falls at solid pace in July

Key points:

.. Composite data signals fifth successive monthly decline in business activity

..  Private sector new work falls only marginally

..   Service sector optimism remains solid

Summary:

              Japanese service providers reported lower business activity for the sixth consecutive month during July, as intakes of new work continued to fall amid weak domestic consumption. Companies further reduced their employee numbers in response. Looking ahead, service providers expressed a solid degree of optimism in the one-year business outlook. Meanwhile, output prices and input costs decreased at marked and marginal rates respectively.

The seasonally adjusted Business Activity Index posted 45.3 in July, down fractionally from 45.4 in June,

China PMI Falls Below 50 and Europe Stagnates---Markit -HSBC Flash PMI

                              HSBC Flash China Manufacturing PMI™
Chinese manufacturing production declines at fastest rate since March 2009
• Flash China Manufacturing PMI™ at 48.9 (50.1 in June). 28-month low.
• Flash China Manufacturing Output Index at 47.2 (49.8 in June). 28-month low.
Data collected 12–19 July.
The HSBC Flash China Manufacturing Purchasing Managers’ Index™ (PMI™) is published on a monthly basis approximately one week before final PMI data are released, making the HSBC PMI the earliest available indicator of manufacturing sector operating conditions in China. The estimate is typically based on approximately 85%–90% of total PMI survey responses each month and is designed to provide an accurate indication of the final PMI data.

Commenting on the Flash China Manufacturing PMI survey, Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC said:
“Headline flash PMI fell below 50 for the first time since July 2010, suggesting slowing momentum of manufacturing activities. This implies that June's rebound in industrial production was just temporary. We expect industrial growth to decelerate in the coming months as tightening measures continue to filter through. That said, resilience of consumer spending and continued investment in a massive amount of infrastructure projects should support a nearly 9% rate of GDP growth in the rest of the year.”
                                          Markit Flash Eurozone PMI
               Eurozone growth slows to near-stagnation in July----- Markit PMI

    Flash Eurozone PMI Composite Output Index(1) at 50.8 (53.3 in June). 23-month low.
􀂃 Flash Eurozone Services PMI Business Activity Index(2) at 51.4 (53.7 in June). 22-month low
􀂃 Flash Eurozone Manufacturing PMI (3) at 50.4 (52.0 in June). 22-month low.
􀂃 Flash Eurozone Manufacturing PMI Output Index(4) at 49.5 (52.5 in June). 2-year low.
                                         Data collected 12-20 July
The Markit Flash Eurozone PMI® Composite Output Index, based on around 85% of usual monthly replies, fell from 53.3 in June to 50.8 in July. The latest reading was the lowest since August 2009 and signalled a near-stagnation of private sector output, the rate of growth having slowed sharply in each of the past three months. The month-on-month fall in the Output Index in July was the largest since November 2008.
 ***Manufacturing output declined – albeit only marginally – for the first time since July 2009, while activity growth slowed sharply in services to the weakest since September 2009.
The deterioration in the survey’s output indicators reflected weaker order book trends. Across both sectors, new business showed only a very marginal increase in July, registering the smallest rise since demand for goods and services first started growing again back in September 2009. Levels of incoming new business fell in manufacturing for the second month in a row, declining at the fastest rate since June 2009 – with new export orders dropping for first time since July 2009. Service sector new business meanwhile showed the weakest rise since November 2009, the rate of growth having lost almost all of the strong momentum seen earlier in the year.

Forward-looking indicators failed to improve. Expectations of service sector activity in the coming year were unchanged compared to June – which had seen the lowest level of optimism since July 2009. At the same time, the ratio of manufacturing new orders to inventories, which acts as a guide to near-term output developments, fell to the lowest since April 2009.
The rate of expansion across both sectors slowed in both Germany and France, dropping especially sharply in the former. Germany saw the weakest rate of growth in two years, while French growth was the slowest since August 2009. Elsewhere, outside of the two largest countries, output fell for the second successive month, and at the steepest rate since August 2009.
Employment growth held up well in the face of the near-stagnation of both output and order books, running below the rate seen earlier in the year but up marginally compared with June. Minor upturns in the rate of job creation were seen in both manufacturing and services, with the former continuing to see the stronger rate of growth. Staffing levels rose in France and Germany, but fell overall across the rest of the region.
Backlogs of work fell for the first time since November 2009. Although only slight, the decline suggests that headcounts may be reduced in coming months unless inflows of new work revive. Manufacturers reported a steeper drop in outstanding work than service providers.
Price pressures eased during the month. Average prices charged for goods and services rose at the weakest rate for six months, while input price inflation across the two sectors dropped to a 12-month low.