The Economic Data Shows Further Deterioration in the Eurozone
The ECB is expecting the data to show improvement in the economy, but the data keeps deteriorating in the Eurozone
The economic data was weakening throughout last year in the Eurozone and this year it has deteriorated further. The industrial sector and the manufacturing sector are in a difficult spot after falling into deep contraction in March, and the April data confirmed the contraction again.
We have seen a few green shots in the last several weeks and have been hoping for a reversal. But the reversal is not coming and the numbers continue to show further deterioration. We had a round of data this morning and the main figures missed expectations and declined further, as you can see below:
| Eurozone Economic Data | Actual | Expected | Previous |
| Final Consumer Confidence | -7.9 | -7.9 | -7.9 |
| Economic Confidence | 104 | 105 | 105.5 |
| Business Climate Indicator | 0.42 | 0.49 | 0.53 |
| Industrial Confidence | -4.1 | -2 | -1.7 |
| Services Confidence | 11.5 | 11.5 | 11.3 |
| M3 Money Supply YoY | 4.5% | 4.2% | 4.3% |
| Private Loans YoY | 3.2% | 3.3% | 3.3% |
The important figures are in red as you can see. The final revision of the consumer confidence remained at -7.9 points which is pretty bad, and the economic confidence deteriorated further to 104 points. Business climate indicator, which is another important component, also continues to decline and it fell to 0.42 points from 0.53 points previously, while the industrial confidence fell further into negative territory.
The confidence in the services sector remains unchanged more or less, while M3 money supply increased, but that doesn’t mean anything if it doesn’t translate into higher loans, which in fact declined this month. So, no reason for the Euro to turn bullish anytime soon and in fact, EUR/USD has turned bearish in the last two hours.
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