The balance of risks to growth in the region is still tilted to the downside. The big question about the euro area economy is when the bottom of the slowdown will be reached. A rebound was already expected in Q4 2018, but at the start of this year there are still few signs of recovery. Flash composite PMI numbers for the region declined by 0.4 points to 50.7 in January, the weakest level since July 2013. New orders and...
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The balance of risks to growth in the region is still tilted to the downside.The big question about the euro area economy is when the bottom of the slowdown will be reached. A rebound was already expected in Q4 2018, but at the start of this year there are still few signs of recovery. Flash composite PMI numbers for the region declined by 0.4 points to 50.7 in January, the weakest level since July 2013. New orders and new export orders remained weak and below the economic expansion threshold...
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Recent protests could have a negative impact on French growth, tax revenue and president Macron’s reform plans for his country and for Europe. French protests began on November 17 over hikes in fuel taxes, but have progressively broadened out into an expression of general anger with the French government about the cost of living and high taxes. To calm the situation, the government has dropped the planned fuel tax hike...
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Recent protests could have a negative impact on French growth, tax revenue and president Macron’s reform plans for his country and for Europe.French protests began on November 17 over hikes in fuel taxes, but have progressively broadened out into an expression of general anger with the French government about the cost of living and high taxes.To calm the situation, the government has dropped the planned fuel tax hike from next year’s budget.Whether or not this will be enough to satisfy the...
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There was a broad-based setback in euro area business surveys in February, whether in terms of country or of sector. The Flash composite PMI slipped to 57.5 in February from 58.8 in January. The month-to-month dip was the biggest since 2014. National business surveys painted a similar picture. In Germany, the Ifo business climate index dropped by 2.2 points to 115.4 in February, from an all-time high of 117.6 in...
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Latest business surveys surprise on the downside, but still indicate that economic expansion remains strong.There was a broad-based setback in euro area business surveys in February, whether in terms of country or of sector. The Flash composite PMI slipped to 57.5 in February from 58.8 in January. The month-to-month dip was the biggest since 2014.National business surveys painted a similar picture. In Germany, the Ifo business climate index dropped by 2.2 points to 115.4 in February, from an...
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Markit Flash PMI surveys for October were above consensus and there was a considerable improvement in sentiment in Germany, possibly pointing to stronger Q4 GDP figures. Euro area business surveys just released show a solid start to the fourth quarter. More importantly still, these forward-looking indicators suggested that growth is likely to gain momentum in the months ahead, in particular in Germany. The good performance of the German manufacturing sector suggests that external demand...
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