• 761 days Will The ECB Continue To Hike Rates?
  • 762 days Forbes: Aramco Remains Largest Company In The Middle East
  • 763 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,163 days Could Crypto Overtake Traditional Investment?
  • 1,168 days Americans Still Quitting Jobs At Record Pace
  • 1,170 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,173 days Is The Dollar Too Strong?
  • 1,173 days Big Tech Disappoints Investors on Earnings Calls
  • 1,174 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,176 days China Is Quietly Trying To Distance Itself From Russia
  • 1,176 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,180 days Crypto Investors Won Big In 2021
  • 1,180 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,181 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,183 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,184 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,187 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,188 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,188 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,190 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Italian GDP Contracted in Q2

The first of the Euro-zone's big economies reported preliminary Q2 GDP data today -- and the picture was not a pretty one. Italy's GDP contracted 0.3% q-o-q in Q2, and posted zero growth on the year.

That Italy's economy is stalling out is no surprise - already one of the weaker economies in the 15-nation Euro-zone, data in recent weeks have pointed to a marked deceleration in the 'zone's third-largest economy. Consumer morale has plunged to near-15-year lows and business sentiment is the weakest it's been in seven years. The Markit manufacturing PMI for Italy dropped further below the growth-contraction divide of 50.0 in July. The index reading of 45.3 was down from 46.9 in June, the fifth straight monthly decline and its weakest showing in nearly seven years.

Yesterday, the European Central Bank (ECB) left interest rates on hold at 4.25% and stated that risks to economic growth are starting to materialize. Euro-zone GDP almost certainly contracted in Q2 - Eurostat will release its flash estimate on August 14, the same day that Germany and France release their own first estimates. If the numbers surprise on the downside, the markets will start anticipating a rate cut from the ECB on September 4. However, bank policymakers continue to warn about inflation risks, and an easing is highly unlikely so soon after the last rate hike (on July 3). Euro-zone interest rates are probably on hold for the rest of this year - unless the 'zone-wide slowdown starts to look like a collapse.

 

Back to homepage

Leave a comment

Leave a comment