Eurozone: Export negativity overdone - ANZ

According to analysts at ANZ, the negativity about the Eurozone’s export sector looks overdone.

Key Quotes

“In H1 2018, German exports rose 3.9% y/y as exports to European Union (EU) countries rose 5.4% y/y and exports to third parties rose 1.9% y/y. In January–May, EU exports to the US rose 2.1% y/y.”

“The sentiment about a deteriorating export sector looks overdone and investor concentration on the manufacturing side of the economy fails to acknowledge the positive developments taking place elsewhere.”

“EA GDP by industry excluding manufacturing in Q1 it rose by 0.6% q/q, up from 0.5% q/q in the second half of last year. There seems to be a growing divergence between sentiment and underlying economic activity. Below we analyse the prospects for key sectors of the EA economy.”