EURO ZONE

摘要

Sentiment regarding the Euro zone economy has improved on the back of the recovery gaining traction. The region's jobless rate fell to an 8-year low in February, by 140,000, from 9.6% to 9.5%, and has tumbled 360,000 in the three months to February to 15.4mn unemployed. Stubbornly-high joblessness in the Euro area underscores the economic and political crises which have beset the region over the past 8 years. Meanwhile, after a weak -1.2% (m-o-m) December showing for industrial output, January saw a 0.9% jump, a situation in line with March's manufacturing PMI. German, French and Italian new orders and factory output pushed the PMI to an almost six-year high of 56.2. Our panel's production outlook has been upgraded as a result. Consumption indicators are also showing momentum alongside the improved job market picture: retail trade jumped 0.7% (m-o-m) in February after a lacklustre 0.1% showing in January and declines at the end of last year. Elsewhere, the CPI reached 2% (y-o-y) in February, highlighting the rapid rise in recent inflation, but 2017 CPI forecasts have tailed off this month (chart below).