Eurozone GDP Growth Improves Slightly In Q2

Eurozone GDP Growth Improves Slightly In Q2

The euro zone may not be growth champion in the second quarter, after the USA rebounded to an annualized 2.6 percent thanks to consumer spending and business equipment investment. "Today's upside surprise in..." The core index rose to 1.2% last month versus the 1.1% consensus, although this was somewhat offset by a downward revision to June's data.

The figures are also well below the BoE's recent forecast that mortgage approvals would average 71,000 a month in the coming quarters and will likely be another signal for the bank that interest rates should remain unchanged when it meets later this week.

The latest figures showed an improving employment situation for Italy and Spain, the two countries with the highest unemployment rates in Europe (excluding Greece).

In the United Kingdom by contrast, the latest official figures released last week showed the economy grew by just 0.3% in the second quarter of 2017 following 0.2% expansion in the first three months of the year.

Earlier, the final IHS Markit Euro-Zone manufacturing PMI showed that Euro-Zone manufacturing growth slowed slightly at the start of the third quarter.

The Pound continued to benefit from broad US Dollar weakness yesterday, soaring to its strongest position against the greenback since September 2016. His ultra-easy monetary policy is partly behind the robust economic recovery, showing more effect this year as growth in bank loans to the private sector hit a 10-year high in May. The jobless rate of 9.1 percent was the lowest since February 2009.

Data out of the United States was relatively encouraging yesterday, although did little to prevent the sell-off in the Dollar.

"Although the exchange rate remains a key driver of export growth, manufacturers also benefitted from stronger economic growth in key markets in the euro area, North America and Asia-Pacific regions", Dobson said.