As I noted in my previous euro-FAIL post, the one and only uncontrollable monkey-wrench that couldn't be prevented from fouling the Euro-machinery, is a declining economy. If the Euro has a will, they have a way--unless they re-enter a recession. In that case, they will be unable to meet their deficit targets, no matter what austerity measures they pass. So let's take a look:
Euro recovery-GDP was even worse than in the U.S., and it doesn't look like its in an uptrend. We should be getting Q3 figures shortly.
Economic activity (these charts display PMI manufacturing and services, respectively) has been falling sharply in the Euro-zone. Monday (Sunday night in the U.S.) will have the latest figures, so we'll see if they get a rebound-bounce like in the U.S., or continue their descent.
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