Friday, June 29, 2012

29/6/2012: Eurocoin June 2012: Rotten Readings

Eurozone's latest lead growth indicator Eurocoin (CEPR and Banca d'Italia) has hit a new low for the year in June.

In June the €- coin index declined from -0.03% to -0,17%, indicating a further worsening of cyclical economic difficulties. The decline is due principally to the markedly worse results of opinion surveys of firms and households and, to a lesser extent, to trends in share prices.

Charts below:

My forecast, consistent with eurocoin data is for growth in Q2 of -0.25-0.37% in GDP, as per below:

The monetary policy remains stuck in 'ineffective' mode:

Rotten to the core!

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