Title: Eurozone's Econoly on a surprise Booming
Pytheas - February 23, 2006 08:14 PM (GMT)
| QUOTE |
| Eurozone industrial orders take surprising jump Wednesday, February 22, 2006 Posted: 1432 GMT (2232 HKT)  Analysts say the rise in new orders is "very encouraging." Industrial new orders in the eurozone rose 2.5 percent in December from November, European Union statistical office Eurostat said on Wednesday, confounding economist expectations of a decline. Orders in the single currency area rose 7.1 percent in December compared with a year earlier, also well above estimates and providing encouragement about the prospects for production in the eurozone, where economic growth slowed late last year. Analysts polled by Reuters had forecast a 1.0 percent monthly fall in new orders and a 0.1 percent year-on-year gain. The data was "very encouraging" and bodes well for production in the early months of 2006, said Howard Archer, chief European economist at Global Insight. "Eurozone new orders surged 5.3 percent quarter-on-quarter in the fourth quarter of last year, which is an extremely impressive performance even allowing for the volatility of this indicator," he said. The numbers were likely to reinforce the European Central Bank's belief that the eurozone recovery remained intact, further guaranteeing that it would raise interest rates by 25 basis points next week, Archer said. Eurostat also revised upwards its new order numbers for November, reporting a month-on-month rise of 5.3 percent versus an initial reading of 4.9 percent and a year-on-year jump of 9.9 percent versus the prior reading of a 9.2 percent gain. Lorenzo Codogno, European economist at Bank of America, urged against reading too much into the data because of its volatility. "However, if you put together the good reading and the upward revision of the previous number and the other indicators that are pointing to some revival in production and consumption in the beginning of the year, I think it is reassuring," Codogno said. The figures came about a week after Eurostat said weak performances by Germany and France slowed euro zone economic growth in the last quarter of 2005. http://edition.cnn.com/2006/BUSINESS/02/22/eurozone.industry.reut |
:D
And another article:
| QUOTE |
| ECB's Wellink sees eurozone growth at 2 pct 06/07 TORONTO, Feb 20 (Reuters) - Dutch central bank governor Nout Wellink said on Monday he was "mildly optimistic" for Europe's future and saw growth in the euro area in the next two years of about 2 percent, with exports rising with robust global growth. Speaking in Toronto at an association of Dutch and Canadian business leaders, he added eurozone exports could also with some delay benefit from the depreciation of the euro last year, and favourable financing conditions and high corporate profitability should boost investment. The European Central Bank (ECB) has forecast growth of around 1.9 percent in 2006. However Wellink said private consumption growth could lag and oil prices could threaten the strength of the recovery. "Unfortunately, private consumption growth is likely to continue to lag behind in the near-term future, due to moderate progress in disposable income growth," Wellink said. "A possible downward risk for growth and upward risk for inflation stems from oil prices," he added. Although the strong rise in oil prices appeared only to have affected headline inflation at present, he said it could take some time for oil prices to attain their maximum impact on output and prices. "For that reason the impact of a protracted increase in oil prices may be more substantial than a temporary hike," he said. Higher oil prices tended to lower world trade, Wellink said, and would have strongly negative repercussions for a small open economy like the Netherlands. DUTCH ECONOMIC GROWTH However, Wellink said he expected the Dutch economy to show a healthy recovery in 2006, forecasting growth of more than 2 percent in 2006 and 2.5 percent in 2007. "An important driving force behind the cyclical upswing is the global economy. This will stimulate exports. A turn to the better of price competitiveness, after years of losses, will further underpin export growth." The Dutch economy grew 0.9 percent in 2005, with expansion accelerating in the fourth quarter largely due to higher exports and leaving many, including Finance Minister Gerrit Zalm optimistic of growth as high as 2.5 percent in 2006. Contained labour costs should also support the Dutch economy, Wellink said, adding that the labour market appeared to have turned the corner which should help support private consumption. Wellink cautioned that the Netherlands' ageing population could hamper economic growth long-term. "Research indicates that if we do not act now, the growth rate of income per capita in the Netherlands will decrease by about 0.5 percentage points," he said. "To sustain growth over the long-term, structural reforms, for instance, to raise the labour participation rate of older workers, remain warranted." http://today.reuters.com/investing/finance...ECB-WELLINK.XML |
:hathello:
And have in mind that always the military purchases and developments depend on the strenght of the economy !!! :thumbsup:
Can a mod please edit the title so Econoly-->Economy ?? Thanks in advance.
123-t - February 23, 2006 09:59 PM (GMT)
Indeed, quite surprising.
When a certain proportion of optimism is spread in the european society the economy will prosper after several years of recession.
When a certain proportion of optimism is spread in the european society the economy will prosper after several years of recession.