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European economy

Eurozona PMIs chunguis

European economy, Relevant News Item 23rd August 2023

Eurozone services sector worsens in August with similarly weak manufacturing performance: region could contract by 0.2% in Q3

CdM: The eurozone’s private sector activity has deteriorated significantly during the month of August, when in addition to the fall in activity in the manufacturing sector there has also been a worsening in services, according to advance data from the Purchasing Managers’ Index (PMI) and reported by Europa Press, which suggest a contraction in the eurozone’s GDP of 0.2% in the third quarter of 2023. Specifically, the advance estimate of…

alemania reichstang

European economy, European politics, Relevant News Item 22nd August 2023

Germany proposes restrictions on Chinese direct investment in sectors like semiconductors, AI and quantum computing

Banca March| German Vice Chancellor Robert Habeck, Germany’s finance minister and a member of the Green party, is proposing restrictions on sectors where Chinese influence could pose a threat to Western economic security. These include semiconductors, artificial intelligence and quantum computing. These measures are framed in a context of debate and criticism of China’s geopolitical situation; authoritarianism in the country, military threats against Taiwan and ties with Russia. On the…

Europa chinchetas

European economy, Relevant News Item 16th August 2023

Eurozone returns to growth in second quarter, GDP rises by 0.3%

CdM| After a first quarter in which the economy showed no progress, the Gross Domestic Product (GDP) of the eurozone recorded growth of 0.3% in the second quarter, according to the preliminary estimate published by Eurostat, the EU’s statistics office. Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 0.6% in the euro zone. For its part, in the European Union (EU) as a whole,…

eurozone.a tope

European economy, Relevant News Item 8th August 2023

Eurozone investor confidence ends three-month decline at -18.9 in August (vs. -22.5 in July)

CdM: Investor confidence in the euro area rebounds more than expected. In August, the Sentix index stands at -18.9 from -22.5 in July. The consensus expected it to fall further to -23.4. This puts an end to three consecutive months of declines. The data was driven entirely by an increase in the future expectations indicator, which rose 7.3 points to -17.3. However, the figure still “underscores current recessionary conditions” and…

Eurozona IPC 1

European economy 4th August 2023

Eurozone shrinks in July: manufacturing slows, services sector stagnates

CoM| A deepening slowdown in manufacturing and near stagnation of activity in the services sector means that the eurozone has started the third quarter with the fastest contraction in total activity since November last year, according to the PMI index. “The second half of the year has got off to a bad start for the euro area economy. Judging by the PMI index, total economic activity fell in July after…

eurozona banderas CM

European economy 3rd August 2023

Eurozone unemployment remains at record lows (6.4%)

Bankinter: The Unemployment Rate has come out better than expected and remained at historical lows, showing the strength of the labour market. Unemployment Rate (June): 6.4% vs 6.5% expected and 6.4% previous (revised from 6.5%). Assessment: June’s figure repeated May’s and remained at historic lows. Following last week’s European GDP and CPI data, employment figures continue to show the strength of the labour market. With inflation slowing and employment supporting…

eurozona a secas

European economy 2nd August 2023

Eurozone 2Q2023 GDP rises +0.6% driven by service-dependent countries

Bankinter : 2Q2023 GDP (preliminary) stood at +0.6% vs +0.5% estimated and +1.1% previous (revised from +1.0%). In quarter-on-quarter terms +0.3% vs +0.2% estimated and -0.1% previously. Assessment: The economy was supported by countries more dependent on the Services Sector, while the worst evolution responded to those more dependent on the Manufacturing Sector such as Germany (two consecutive quarters in negative). The recovery process is slow due to the lower…

Eurozona IPC

European economy 1st August 2023

Eurozone: inflation slows two tenths to 5.2% in July, while GDP grows 0.3% in Q2 2023

The year-on-year inflation rate in the euro area fell by two tenths of a percentage point in July compared to the previous month, reaching 5.3%, which is the lowest increase in prices since January 2022, according to Eurostat’s preliminary estimate, which nevertheless maintains the underlying rate at 5.5%. The moderation in the rise in prices in July is mainly due to the 6.1% fall in the cost of energy, compared…

euros prestamos

European economy 27th July 2023

ECB’s tight monetary policy starts to bite with corporate credit at record lows

Link Securities| According to the European Central Bank’s (ECB) bank lending survey published on Tuesday, 2Q2023 saw a record fall in demand for corporate loans to its lowest level since the survey began in 2003. According to banks in the region, credit conditions tightened more than expected in the quarter under review. Banks also tightened conditions and terms further in 2Q2023 The survey also reported that the net tightening since…

espana europa billete 1

European economy 26th July 2023

Preliminary Eurozone PMIs for July disappoint, falling more sharply than forecast

Bankinter : Preliminary July PMIs disappoint as they fall more sharply than expected. – (i) Manufacturing PMI 42.4 vs 43.5 expected and 43.4 previous. (ii) Services PMI 51.1 vs 51.6 expected and 52.0 previous. (iii) Composite PMI 48.9 vs 49.6 expected and 49.9 previous. By countries: FRANCE. – (i) Manufacturing PMI 44.5 vs 46.0 expected and 46.0 previous. (ii) Services PMI 47.4 vs 48.5 expected and 48.0 previous. (iii) Composite…