Thursday, May 15, 2014

15/5/2014: Flapping at the zero line: euro area GDP growth Q1 2014


Flash estimates of euro area GDP growth for Q1 2014 were out today. Here are few charts (via Markit Economics) of the disaster:

Yep: Netherlands down 1.4%, Portugal down 0.7%, Italy down 0.1%, France flat. Overall euro area at +0.2% which you might as well call 'flat as a pancake'...

The hope or rather 'expectation' was for 0.4% growth. I covered that earlier: http://trueeconomics.blogspot.ie/2014/05/752014-eurocoin-leading-indicator-april.html

Surprise to the downside is huge. It seems that all the hopium injections into expectations - based primarily on firm financial markets and business and consumer sentiment readings, and not on firm actual data have put a bit of bender into the blender... PMIs booming, GDP flapping powerlessly on the zero line.

One would be embarrassed, if one wasn't working in Financial Services...
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