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8/8/13

Europe Is Heading Toward Recovery, but Slowly - by Charles Forelle

Europe's longest recession since World War II appears to be on the verge of ending, driven by a surge in German growth that is helping to blunt the severe economic pain faced by many in the region, but is too modest to lift the global outlook.

A string of recent economic data, including a robust German industrial production report on Wednesday, has boosted hopes that the 17-member euro zone has returned to weak growth after six quarters of contraction. German industrial production in June jumped 2.4% from May, the country's economy ministry said Wednesday, beyond economists' expectations for a 0.3% gain.

The positive news from Germany followed an upbeat survey of purchasing managers in the euro zone last week and signs of slowing recessions in Italy and Spain—the region's third- and fourth-largest economies. Across the Channel, the Bank of England upgraded its growth forecasts on Wednesday. And Portuguese unemployment fell for the first time in two years.

Taken together, the data point to an imminent albeit weak German-led recovery, either in the second or third quarter, economists say. Euro-zone gross domestic product data for the second quarter are scheduled to be released Aug. 14

Read Europe Is Heading Toward Recovery, but Slowly - WSJ.com

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