Eurozone Economic Outlook
May 28, 2019
Flash estimates revealed that growth surpassed expectations in the first quarter of the year, reviving after last year’s sharp slowdown. Although a breakdown by components is not yet available, solid household spending likely supported the result as consumers benefitted from a tightening labor market. In addition, a relatively mild winter may have bolstered the construction sector, while the manufacturing sector is expected to have improved somewhat as one-off issues fade. That said, monthly data still points to soft activity overall and it remains to be seen if momentum will keep pace in Q2. Economic sentiment dropped for the 10th consecutive month in April and the composite PMI continued to point to a two-speed economy in May. Meanwhile, the European parliamentary elections revealed increasing divisions within the union. The vote suggests that the European project will likely remain stuck: with little appetite to move forward or backwards with integration and reforms.Eurozone Economic Growth
Activity is seen slowing in 2019 as a tougher external backdrop dents exports and hinders investment. That said, the continuation of ultra-accommodative monetary policy, some fiscal loosening and growing wages will act as a buffer. Downside risks loom from an escalation of trade tensions, a slowdown in China, market volatility and lingering weakness in the manufacturing sector. Our panel left the Eurozone’s outlook unchanged this month after six downgrades, taking a wait-and-see approach after the positive Q1 outturn. Growth is seen at 1.2% in 2019 and 1.4% in 2020.Eurozone Economy Data
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Eurozone Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 1.13 | 0.65 % | Jun 13 |
| Stock Market | 1,159 | -0.52 % | Jun 13 |
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Eurozone Economic News
Eurozone: Industrial output drops for third month running in April
June 13, 2019
Industrial output contracted again in April, recording the third drop in a row.
Eurozone: ECB pushes back possible rate hike at June meeting
June 6, 2019
The European Central Bank (ECB) turned more dovish at its June monetary policy, responding to the bloc’s softer growth momentum.
Eurozone: Unemployment rate drops to new over-decade low in April
June 4, 2019
Labor market conditions in the common currency bloc improved in April, according to data released by Eurostat.
Eurozone: Euro lingers around two-year lows amid political noise and divergent momentum
May 28, 2019
The euro continued to languish near two-year lows in recent weeks, ending 24 May at USD 1.12 per EUR, barely unchanged from the same day in April.
Eurozone: Economic sentiment rises in May after 10 months of decline
May 28, 2019
Sentiment in the Eurozone improved in May, breaking a streak of 10 months of deteriorating confidence.
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