Friday’s data was dominated by release from the Eurozone. They included German preliminary GDP, final CPI m/m, and German WPI all of which met or slightly exceed their respective targets.
The German preliminary GDP figure was anticipated to show 0.3% but exceed expectation although was far short of the previous quarter figure of 0.7% show a considerable decline. As the leading member and key nation to the Eurozone this no doubt would have made uncomfortable reading.
German CPI monthly figures met the predicted figure of 0.3% on target but highlighting zero change in the price of goods and services. The final piece of data from Germany was the WPI (wholesale price index) used as a barometer of consumer inflation as any raises in wholesale prices are passed on to consumers.
From Germany focus quickly moved to France and Italy. Who also released relatively important data.
France began with their quarterly employment figures which were predicted to show 0.2% growth and met expectations. Then came the turn of Italy potentially the Euros zones most troubled key member who posted another disappointing preliminary GDP figure of 0.0%. Missing the expected amount of 0.2%. It’s worth noting that the struggling economy has fallen short of the mark 3 of the last 5 months.
To conclude, providing a summary of the predicament that the Eurozone faces was the Flash GDP. This figure demonstrates the combined GDP of the Eurozone members and gives great insight into the economic zone. The figure met its target of 0.3% showing that the economy had grown however growth had slowed. It will be interesting to see the outcome of the next quarter as the figure released run up to June. I’m relatively confident that BREXIT combined with a long hot summer will only see the next quarter slip further
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