In one line: Business sentiment eases despite improvement in manufacturing.
Melanie Debono (Senior Eurozone Economist)Eurozone
In one line: Upturns in real M1 growth and credit impulse continue.
Claus Vistesen (Chief Eurozone Economist)Eurozone
In one line: Decent headline, but rising unemployment fears is a red flag.
Claus Vistesen (Chief Eurozone Economist)Eurozone
- Swiss GDP rose by 0.5% on the quarter in Q4, much better than the measly 0.1% growth in EZ GDP.
- Growth will slow, falling in line with that in the EZ, as net trade drags on GDP and spending growth slows.
- The US President has fired another tariff threat at the EU, but we are still in waiting mode.
Melanie Debono (Senior Eurozone Economist)Eurozone
In one line: Little sign of recovery in consumer confidence, but maybe the election changed that.
Melanie Debono (Senior Eurozone Economist)Eurozone
RISKS TO OUR HAWKISH ECB CALL ARE FOR LESS EASING...
- ...ASSUMING ONLY SMALL US TRADE TARIFF INCREASES
Claus Vistesen (Chief Eurozone Economist)Eurozone
- EZ consumers’ spending likely rose by 0.4-to-0.5% in Q4, and we look for the same in Q1.
- We still think a stabilisation in the saving rate will underpin consumption growth this year.
- Consumer confidence data point to a sticky saving rate, but are an unreliable guide.
Melanie Debono (Senior Eurozone Economist)Eurozone
In one line: Stung by plunge in net exports; consumption is now growing, but weakly.
Claus Vistesen (Chief Eurozone Economist)Eurozone
- Huge volatility under the hood of German Q4 GDP; inventories and net trade are key for H1.
- We see full-year 2025 growth of 0.5% in Germany, lower than previously but above consensus.
- EZ negotiated wage growth retreated in Q4, after the one-off-related jump in Q3; further falls are likely
Melanie Debono (Senior Eurozone Economist)Eurozone
- The failure of FDP and BSW to reach 5% paves the way for a CDU/CSU and SPD coalition in Germany.
- Germany’s new government has its work cut out; fiscal reform and defence are at the top of the list.
- EZ inflation rose in January, but a sharp fall in energy inflation will pull the headline down in February.
Claus Vistesen (Chief Eurozone Economist)Eurozone
In one line: A local high, but still no perfect landing at 2%.
Claus Vistesen (Chief Eurozone Economist)Eurozone
In one line: Steady; not a reflection of firms’ attitudes to election result.
Melanie Debono (Senior Eurozone Economist)Eurozone
In one line: Up again, in line with our call for a rebound in GDP.
Melanie Debono (Senior Eurozone Economist)Eurozone
In one line: Ugly crash in the services PMI is a fluke, we hope
Claus Vistesen (Chief Eurozone Economist)Eurozone
In one line: Further increases are likely as political uncertainty abates.
Melanie Debono (Senior Eurozone Economist)Eurozone
In one line: Construction boost to growth in Q4 unlikely to repeat in Q1.
Melanie Debono (Senior Eurozone Economist)Eurozone
- The upturn in the EZ PMIs stalled in February, due to a plunge in the French services index.
- Near-term outlook for services output is still decent, and the PMIs signal green shoots in industry, again.
- ECB hawks will focus on rebounding services prices; doves will note weak French labour-market data.
Claus Vistesen (Chief Eurozone Economist)Eurozone
