The eurozone’s unimpressive recovery may already be losing steam. While growth in the weakest ‘peripheral’ economies is still rebounding, the latest data suggest that some of the ‘core’ economies are under pressure. Manufacturing activity in June fell in Germany, France and Italy, for example.
It seems that the eurozone recovery’s “main engine” – German industry – is stuttering, says Capital Economics. This may be because the global recovery has proved too weak to boost Germany’s vital export sector. The strong euro doesn’t help either.
A rapid rebound seems unlikely – new manufacturing orders have been falling for the past five [...]
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