The curious case of the recent slip in Eurozone economic data points
yesterday as well. The recent down tick in Eurozone data compared to expectations and peak readings in December/January may start to be a cause for concern for the ECB.
Danske (Piet Christiansen) and ING (Bert Coljin) economists are already saying that recent data will push the ECB to maintain a dovish tone, with the former even suggesting that the ECB may hold off on key policy announcements until a later point than currently expected.
While the data points are still relatively decent – they are sitting above the five-year average for example in the case of PMI readings – the slow start to the year is something hard to ignore, and a puzzling one for many economists.
There’s a myriad of factors that could have played a part in that but here’s just some to wrap your head around – as compiled by Bloomberg: