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Other: UK Q2 GDP delcines more than expected

Mon, Jul 27 2009, 07:32 GMT
by KBC Market Research Desk

KBC Bank  |  View company's profile


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EMU: IFO and PMI’s indicate an improvement in economic activity in the second half of the year

In July, the German IFO business climate indicator improved for the fourth consecu-tive month as the index rose from 85.9 to 87.3. The improvement was visible in the current assessment (84.3 from 82.4) and the expectations (90.4 from 89.5) sub-indices.

The advanced European PMI for the month of July also came out better than ex-pected. Both manufacturing survey (46.00 from 42.6) and the services sub-index (45.6 from 44.7) contributed to the improvement. The composite index rose form 44.6 to 46.8. While the levels in the overall indicators and in most sub-indices are still below the 50 boom-or-bust level, the data suggest that some improvement in eco-nomic activity is highly probably going into the second half of this year.


Other: UK Q2 GDP delcines more than expected

Economic activity in the UK shrank in the second quarter by 0.8% Q/Q, according to a publication of the Office for National Statistics. Economic activity declined by 5.6% compared to the same quarter last year. Output of services declined by 0.6% Q/Q, industrial production output was estimated to have fallen 0.7% Q/Q, manufacturing output declined by0.3% and construction showed a negative growth of -2.2% Q/Q. The outcome of this release was weaker than expected. The release might be impor-tant input for the BoE when it will decide whether or not to extend its QE early in Au-gust.


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This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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