EUROPE: Exports To Increase

The economic recovery has faced some setbacks during the Winter in the U.S., but should accelerate in Spring and Summer. The euro currency, in the mean time, is challenging important resistance lines against the U.S. dollar.


U.S.: Awaiting for March numbers.


There is only modest recovery, so far. This is what stands out from the latest Fed’s Beige Book prepared before Feb. 22nd. Consumer spending is rising, but activity remained modest, also due to the poor weather conditions. Inventories have been rebuilt, as manufacturers are showing optimism and planning to increase their investments. In effect, personal income moved up 0.1% month-on-month in January, while spending rose 0.5% during the same period. However, the job market remains weak, albeit improving. In February, the workforce contracted only by 36,000, better than the expected decline of 50,000. The unemployment rate, which also surveys 60,000 households, stayed unchanged at 9.7%, but below October’s high of 10.1%.