29 Apr 2016
Eurozone: Improving macroeconomic conditions - TDS
Research Team at TDS, suggests that the buffet of euro area data this morning shows generally improving macroeconomic conditions.
Key Quotes
“Inflation dipped further into negative territory, with a below-consensus print of -0.2% y/y reflecting an unwind of positive but temporary Easter-related factors in March. The core inflation measure slowed to 0.8% y/y, reflecting similar one-off factors. First-quarter GDP increased by much more than expected, with a q/q gain of 0.6%, doubling its 15Q4 pace of 0.3%.
The unemployment rate also showed improvement, falling to 10.2%, and showing its best year-on-year improvement since the before the financial crisis. The ECB will take comfort from the strong real-activity side, knowing that higher oil prices will soon start to feed through to inflation in the second half of this year.”
Key Quotes
“Inflation dipped further into negative territory, with a below-consensus print of -0.2% y/y reflecting an unwind of positive but temporary Easter-related factors in March. The core inflation measure slowed to 0.8% y/y, reflecting similar one-off factors. First-quarter GDP increased by much more than expected, with a q/q gain of 0.6%, doubling its 15Q4 pace of 0.3%.
The unemployment rate also showed improvement, falling to 10.2%, and showing its best year-on-year improvement since the before the financial crisis. The ECB will take comfort from the strong real-activity side, knowing that higher oil prices will soon start to feed through to inflation in the second half of this year.”