Global economic momentum helps the euro zone
06 July 2014
Posted in
sentix Economic News
After having receded for two months in a row, the sentix economic index (composite index) for the euro zone increases again in July by 1.6 to now 10.1 points. On the one hand, investors assess the current economic situation as being better than last month. On the other hand, 6-month expectations also increase slightly after having weakened for four consecutive months. This stabilisation of expectations coincides with a European Central Bank taking new expansionary monetary measures. But a probably more important impact for the euro zone comes from the world economy as expectations improve even more strongly for the other regions in the survey. Posi-tive developments are especially pronounced for the US and for Japan. This should also have had a positive influence on investors' judgments concerning the euro area, too. Consequently, the euro zone now seems to bene-fit from a stronger world economy, while it was itself a prominent motor of global growth until just a few months ago.
Headlines of the month
- The composite index for the euro zone increases in July from 8.5 to 10.1 points. 6-month expectations improve slightly for the first time after four setbacks in a row.
- For Germany the composite index stands with 29.0 points at about the same level for the fourth consecutive month.
- In contrast, a marked development can be observed for the composite index of the global aggregate. This index climbs by three to now 17.9 points which is its highest reading since January. Drivers are investors' assessments regarding the US, Asia ex Japan and Japan. For the US, the composite index even increases to its highest value since February 2004
