Europe-wide srowth slowdown
As noted in our Eurozone Outlook update, forward-looking PMI indicators clearly signal a sharp slowdown ahead, including in core economies, as shown by the new-orders-to-inventory ratios in the manufacturing sector, for example. The flash Q2 GDP estimate of 0.2% q/q is bound to overstate the degree of the activity slowdown, especially in core economies, when compared with the stronger performance of the previous quarter.
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