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- Eurozone's manufacturing weakness is yet to hit investment - ABN AMRO
Eurozone's manufacturing weakness is yet to hit investment - ABN AMRO
Analysts at ABN AMRO expect the total investment to have contracted in Q3 and to continue to decline during the next couple of quarters in the Eurozone.
- "Fixed investment growth in the eurozone has remained resilient despite the contraction in industrial production and the drop in business confidence during the past six quarters.
- A large number of early indicators for investment in machinery and equipment, such as the new orders component of the eurozone industrial PMI and Ifo’s business climate in the capital goods industry (as well as its component about orders on hand) are consistent with a contraction in investment in machinery and equipment.
- All that said, we expect residential investment to continue to expand in the coming quarters, and to limit the pace of the decline in total fixed investment."
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