Eurozone Economic Data Signals Stalling Economy Amid Lingering Employment Resilience
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Economic data out of the Eurozone is not improving and continues to tell a tale of a stalling economy, albeit this has not yet translated into layoffs and employment continues to hold up well. Last week’s retail sales report was slightly stronger-than-expected, although we still saw a more than 1% annual contraction and a fourth quarterly downturn in activity in the past five monthsEUR Economic data out of the Eurozone is not improving and continues to tell a tale of a stalling economy, albeit this has not yet translated into layoffs and employment continues to hold up well. Last week’s retail sales report was slightly stronger-than-expected, although we still saw a more than 1% annual contraction and a fourth quarterly downturn in activity in the past five months.
The hawkishness on display at the European Central Bank's December meeting is being diluted slowly by dovish noises coming from various members of the Council. This week's industrial production data for November is expected to be dismal, and more clarity on the ECB's plans should come from a barrage of ECB officials' speeches, including president Lagarde on Wednesday. The bank’s latest meeting accounts should also shed some light on the December communications when released on Thursday.
