The coronavirus outbreak may already be having an impact on US economic output. Initial February forecasts for the ISM manufacturing index were below economists’ expectations, suggesting that, as the virus spreads beyond China, it could pose a threat to the nascent uptick in activity observed in recent months.
The extended lockdown in a number of Chinese cities is delaying the economic recovery. Although official macroeconomic figures won’t be published until mid-March, the latest data show that both manufacturing and consumer spending have taken a hit. However, the Chinese government has introduced a series of stimulus measures, which include a key interest rate cut, in an attempt to bolster the economy.
Germany’s ZEW Indicator of Economic Sentiment fell sharply in February, particularly in terms of economic expectations. The feared negative effects of the coronavirus outbreak are weighing heavily on sentiment. This suggests that the upturn in the eurozone may come later than expected.
The outbreak spreads
Alternative funds – a look back at 2019
To go deeper
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These three words pronounced in July 2012 by the President of the European Central Bank (ECB) at the time were enough to reverse a financial crisis that had been in the making for several months. The European Monetary Union at that time was seriously threatened by the European government debt crisis. Above all, the Covid-19 epidemic triggered a health crisis...