Eurozone vs USA, whose economy is doing better?

Eurozone vs USA, whose economy is doing better?

As we covered a few days ago, looking just at the manufacturing PMIs it is clear that the Eurozone economy is looking much stronger than that of the US.  So here’s a closer look at the surveys.  Sometimes you see a surge in a particular economic indicator and it is not matched by equal or similar improvement in other indicators, so it is important to take a broader view.  In this ChartBrief we look at the z-scores or normalized readings of 6 different surveys for the Eurozone and the USA.

A couple of things standout, first of all, the Eurozone strength is broad-based with virtually all of the surveys in agreement in terms of direction and magnitude.  The composite of these surveys is notably at post-crisis highs, thus it is fair to say the Eurozone economy is looking good – the best it has in about 10 years.  The US economic survey indicators have similarly seen a synchronized surge, but there are signs that it is starting to rollover as arguably things got a little over-hyped.


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The Eurozone economy is looking good based on a range of different economic sentiment surveys, as noted in the latest weekly report, and conditions look the best since the global financial crisis.

The various economic sentiment surveys for America underwent a big surge from a soft patch in early 2016 to multi-year highs on a number of metrics, but have now started to roll over.

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Topdown Charts: "chart driven macro insights" Based in Queenstown, New Zealand, Topdown Charts brings you independent research and analysis on global macro themes and trends. Topdown Charts covers multiple economies, markets, and asset classes with a distinct chart-driven focus. We are not bound by technical or fundamental dogma, and instead look to leverage any relevant factor to capture the theme. As such, here you will find some posts that are purely technical strategy, some that just cover economics and data, and some posts that use multiple inputs to tell the story and identify the opportunities. Callum Thomas Head of Research Callum is the founder of Topdown Charts. He previously worked in investment strategy and asset allocation at AMP Capital in the Multi-Asset division. Callum has a passion for global macro investing and has developed strong research and analytical expertise across economies and asset classes. Callum's approach is to utilise a blend of factors to inform the macro view.
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