Eurozone: Signals less negative than expected, but downside risks to growth

BNP Paribas Team BNP Paribas

Even though most headline indicators exceeded downbeat expectations in November 2018, they remain on a declining trend. The PMIs for Manufacturing (51.4) and Services (51.4), pulled down by the sharp decrease in the French PMI related to heightened social tensions, just managed to stay above the expansion line (50). Economic activity slowed to 0.2 % in Q3 2018, which actually reflects some divergent developments. In particular, in Germany, growth contracted by 0.2 %. Core inflation (+1.0 %), in line with the Consensus, is still well below the ECB’s medium-term price objective, but could inch up in the coming months because of the observed acceleration in wages.

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BNP Paribas Team

BNP Paribas

BNP Paribas Economic Research Department is a worldwide function, part of Corporate and Investment Banking, at the service of both the Bank and its customers.

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