Broker Check

Europe's Turnaround

| August 30, 2017
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Encouraging Numbers for European Companies as profits increase:

GDP

(released August 1, 2017)

GDP in the 19 countries that use the euro expanded 0.6% in the second quarter of 2017, building on growth of 0.5% in the first quarter, according the EU statistics body Eurostat. This was the fastest annual growth since 2011. In the eurozone, growth has quickened and unemployment has fallen against the backdrop of ultra-low interest rates and other measures by the European Central Bank to boost activity.

Unemployment

(released July 31, 2017)

According to Eurostat, Eurozone Unemployment Rate for June was 9.10%, compared to 9.20% in May and 10.10% in June of last year. This is lower than the long term average of 9.59%.

Eurozone PMI

(released August 1, 2017)

Markit’s overall health check on manufacturers across the euro area came in at 56.6 in July, down from the 74-month high of 57.4 hit in June. This is the 49th month running in which the factory PMI has come in over 50 points, indicating that the sector has now grown for over four years running. Encouragingly, the expansion seems to be widespread. Every individual country tracked by Markit reported factory growth, including Greece!

(Data and Commentary courtesy of First Trust Portfolios LLC research):

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