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The UK’s manufacturing sector saw strong growth last month, with job creation reaching a 33-month high. Markit and CIPS’ purchasing managers’ index hit 56.9 in February, after analysts forecast 56.5. From Markit’s release: The strong upswing in the UK manufacturing sector was maintained during February, as levels of production and new business continued to rise at robust and [...]
A Eurozone quantitive easing (QE) programme is now anticipated by BNP Paribas, one of France’s biggest banks. It follows Fathom Consulting, which has been suggesting a similar scheme since January. BNP Paribas suggest the programme would be around €300-500bn (£246-410bn) – small in comparison to schemes in Japan, the UK and US, but a major [...]
The European Commission just published its winter economic forecasts, with stronger economic growth and lower inflation projected for most of the Eurozone and EU generally. Growth is stronger in every large European economy except Italy, and still projected to rise in Greece, which would end a recession that has run since 2008. Olli Rehn, the [...]
Traders still expect policy action next week, but not all disinflation is seen as a problem for the single currency Yesterday’s upward revision to January’s Eurozone inflation reading did little to calm the nerves of those worried about a possible slip into Japanese-style deflation. The harmonised index of consumer prices (HICP) was revised up from [...]
Confidence in the economy relapsed in the Eurozone in February. The European Commission’s consumer confidence index fell to -12.7, from 11.7 in January. Analysts had expected things to improve slightly, to 11.25. Across the European Union, January’s reading of -8.8 fell to -9.3 this month. The fall follows weaker Eurozone PMIs, out earlier today. [...]
Despite a boost from new orders, figures for manufacturing and services activity in the Eurozone suggests recovery is still fragile, but remains on track. Markit’s so-called flash services purchasing managers’ index (PMI), for manufacturing activity in the Eurozone, was 53 in February – expectations were for that it'd stay at 54. The services activity index [...]
A SENIOR European Central Bank (ECB) official yesterday brushed off suggestions that the Eurozone could suffer a period of deflation, going as far as to suggest that low inflation and a relatively strong euro could self-correct this year. Austrian central bank chief Ewald Nowotny also said it was not in the ECB’s remit to perform US-style [...]
PRIVATE forecasters have slashed their estimates for inflation in the Eurozone this year and next, according to the European Central Bank (ECB). The central bank’s survey of outside projections has become significantly more conservative this quarter, with a 1.1 per cent increase in prices expected this year, and 1.4 per cent next year. At the end [...]
THE ARCHITECTS of the European single currency apparently paid little heed to globalisation or the rise of China. The Delors Report in 1989, which set up economic and monetary union in Europe, didn’t mention either of them. Nor did the first official European proposal for monetary union, the Werner Plan in 1970. In retrospect this [...]
AT THE European Central Bank (ECB) press conference yesterday, Mario Draghi was asked whether the Eurozone is tipping into deflation and whether the ECB has the tools needed to respond if it does. “Deflation” has become a bogeyman, the thing economists normally agree to fear most. But is that right? That deflation might be a [...]
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