EVERYTHING IS GOING SWIMMINGLY (EURO EDITION): Economic data in Europe just went from bad to worse.

In terms of the breakdown between services and manufacturing, the former dropped to a 30-month low at 48.3 and the manufacturing PMI rose slightly from 42.7 in July to 43.7 this month.

“Considering the PMI figures in our GDP [growth] nowcast leads us to the conclusion that the euro zone will shrink by 0.2% in the third quarter,” Rubia added.

The euro zone, the region of 20 nations that share the same euro currency, grew by 0.3% in the second quarter, having grown by 0.1% in the first quarter. This lackluster growth shows the impact of higher interest rates and energy prices and subdued external demand.

However, it also masks sharp differences within the region. Germany, for example, reported the deepest contraction in business activity in August.

Of course they did. Germans are enjoying the results of Berlin’s mandated deindustrialization.