Eurozone: Manufacturing masks underlying strength - ANZ

Analysts at ANZ note that the Euro area growth disappointed during H1 2018 and a cross sector analysis of activity shows weakness was concentrated in the manufacturing sector.

Key Quotes

“Excluding manufacturing, underlying momentum remains healthy.”

“Developments in the labour market and the housing market and an improvement in the banking sector suggest that the euro area expansion is intact.”

“As the second half gets underway, monitoring trade talks with the US and discussions between Rome and Brussels on future budget policy will be instrumental in determining investor sentiment.”