From recession to stagnation
05 February 2023
Posted in
sentix Economic News
February data in the sentix economic indices come in better than expected. In Euroland, the overall index rises for the fourth time in a row, improving by 9.5 points to now 8 points. The increase signals that a recession is off the table for the time being. Instead, the scenario of stagnation is gaining in contour. In Germany, too, the overall index improved by around 10 points. Both the current situation (+9.2 points) and the economic expectations (+10.2 points) signal an easing of the situation, but not a final all-clear. For the economic region Asia, things are looking better again: With the fifth increase in a row, the economic region is continuing its initiated upswing: The overall index rises by +10.3 points to now +11.7 points. The assessment of the current situation and expectations are moving up together. This also benefits the overall index for the global economy, which climbs to +1.6 points - the highest value since February 2022.
Headlines of the month
- With the fourth increase in a row and a level of -8.0 points, the overall index for Euroland is gradually heading toward the zero line. The increase of 9.5 points signals that a recession is off the table for the time being. Instead, the scenario of stagnation is gaining in contour.
- In Germany, too, the overall index improved by around 10 points. Both the current situation (+9.2 points) and the economic expectations (+10.2 points) signal an easing of the current situation. Nevertheless, stagnation is also an issue here.
- Bright spot: The economic region Asia ex Japan continues its upswing with the fifth consecutive increase: The overall index rises with +10.3 points to now +11.7 points. Both the current assessment and the expectations index are also on the rise. Overall, the global economic index rose to its highest level since February 2022.
sentix Eco Report Euro area
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