Five Charts That Show The Eurozone Slowdown

This post should be called “Five Charts And A Warning“.

  1. Manufacturing PMI fell to the lowest level since December.

Economic Sentiment Indicator (ESI), fell in August from 111.6 to 110.9, the ninth consecutive monthly fall.Five Charts That Show The Eurozone Slowdown

2. Capacity utilization weakened as well in the latest data.

Five Charts That Show The Eurozone Slowdown

3. Industrial Production weakened.  Industrial production fell 0.8% vs -0.5% expected. Annual growth rate fell from 2.3% in June to minus 0.1% in July.

Industrial orders fell 1.3% in June.

Five Charts That Show The Eurozone Slowdown

4. Eurozone consumer confidence fell from -1.9 to -2.9.

…Only after a 2 trillion euro stimulus and the ECB  balance sheet at 41% of GDP.

  • Growth trimmed to 2%, down from 2.1% for 2018. For 2019, the forecast is at 1.8%, down from 1.9%.
  • Unemployment remains at 8.2%
  • Government spending 45% of GDP.
  • Debt to GDP 88%.

Warning: THIS is what happens when countries abandon all reforms and bet everything on monetary policy. They sow the seeds of a recession and the central bank runs out of traditional tools.

About Daniel Lacalle

Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Author of bestsellers "Life In The Financial Markets" and "The Energy World Is Flat" as well as "Escape From the Central Bank Trap". Daniel Lacalle (Madrid, 1967). PhD Economist and Fund Manager. Frequent collaborator with CNBC, Bloomberg, CNN, Hedgeye, Epoch Times, Mises Institute, BBN Times, Wall Street Journal, El Español, A3 Media and 13TV. Holds the CIIA (Certified International Investment Analyst) and masters in Economic Investigation and IESE.

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