Divergences widen

Some of the euro-zone’s survey indicators have ticked up in the past month. However, they almost unanimously warn of a renewed recession in the region, with the composite PMI, for example, pointing to quarterly falls in euro-zone GDP of nearly 1%. What’s more, country divergences have widened. While German survey indicators remain relatively resilient, those in much of the periphery have weakened further from already low levels. Meanwhile, Spanish unemployment has continued to soar while that in Germany has fallen.