Growth in Germany confirms Europe recovery is `on track` . . . . . . . . . A new update from Germany confirmed Eurozone`s economic recovery is on track to stabilization as the market observed the final second-quarter gross domestic product reading from Europe`s largest economy. The GDP rose a strong quarter-on-quarter 0.7 percent in the three months through July, following a flat first quarter. But the market was on consensus that no change occurred to the advance estimate reported on August 14. Germany, with the largest European economy, led the way again, with output expanding at its fastest pace since January and with manufacturing at a 25-month high, according to Markit data. Nonetheless, Bundesbank, Germany`s central bank, revised its forecast for national output over the next two years, cutting 2013 growth projection to 0.3 from 0.4 percent, and the 2014 forecast was cut from 1.9 to 1.5 percent. With the German elections only four weeks away, and the PMI updates showing a strong third quarter for China, U.S. and Germany, the current forecast of German moderate growth will not be changed by minor revisions. Looking ahead, markets will be closely anticipating the German IFO indices, which are probably more useful on weighing the growth scene and its longevity. #egyptyard
Posted on: Fri, 23 Aug 2013 11:12:31 +0000
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