In July, the €-coin indicator declined moderately, but less than in the previous months, from 0.46% in June to 0.40%. The value of the indicator is consistent with the continuation of the cyclical expansion. The latest decline was due to the performance of financial and equity markets, while manufacturing activity and foreign trade continued to exert upward pressure.
At this time the indicator is not pointing to a double-dip, at least not yet. Overall, the indicator shows how weak the Euro-zone area is with almost no economic growth and trapped in a debt crisis. The only good news from the report is that manufacturing was strong thanks to an extremely weak Euro.
Black Swan Insights