News and Reviews European Economic Zone

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News and Review of European Economic Zone (Portugal)

 

Portugal Bailout Begins Next Review Date 16 September

Monday, September 2, 2013

 

The next review of the Portugal bailout worth 78 billion euros will begin on September 16, according to the Finance Minister on Monday. This review delayed by the government crisis that occurred in July and now will incorporate review into the 8th and 9th of the bailout program. Government crisis resulted in the appointment of several new ministers, including finance minister.

 

The new deputy prime minister and finance minister Paulo Portas newly Maria Luis Albuquerque will visit Brussels, Frankfurt and Washington this week to officials familiar with the institution that provides loans bailout Portugal. Not known how long the review will take place despite previously took about 2 weeks. Portugal bailout plan face a third challenge in the constitutional court last week, when the court refused additional tightening policy.

[mynameisandhy]

News and Review of European Economic Zone

 

Rate of the Euro Zone Manufacturing Sector Growing Faster

Monday, September 2, 2013

 

Activity in the eurozone manufacturing sector rose to its highest level since June 2011 in the month of August, as expansion in the manufacturing sector in the majority of countries in the region, including Spain and Italy. Index from Markit manufacturing PMI was at 51.4 in August, compared with 50.3 in July. The level of new orders for factory goods is growing the fastest pace since May 2011, reinforcing hopes that the manufacturing sector will continue to gain momentum.

 

Markit senior economist Rob Dobson said that unlike previous months, this data is not entirely driven by Germany, with the manufacturing sector in other countries also recorded growth. "We should not forget the fact that the data has reached a high level in 26 months. Journey further towards recovery begins by small step," said Dobson. "What we can see the last few months is a small step, and hopefully will lead to a more sustainable recovery."

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Back British Manufacturing Sector Improves in August

Monday, September 2, 2013

 

Britain's manufacturing sector quickened again in August and the number of new orders and output increased in the fastest pace in almost 20 years, reinforcing expectations that the recovery in the UK began to spread, according to a survey on Monday. Manufacturing sector PMI index from Markit / CIPS jumped to 57.2 last month from 54.8 in July, which is an expansion for 5 consecutive months. This data is the result of the strongest since February 2011 and far exceeded economists' estimates.

 

The survey results make mix signal for the Bank of England's governor, Mark Carney, who appears anxious to the outlook for the British economy is being tested by the financial markets. Growth rate of labor in factories in Britain slowed slightly in August as companies memforsir its workforce. That would be good news for Carney. Last month the BoE said it would hold interest rates at a record low until unemployment fell to 7%, which is estimated by the central bank will be achieved by the end of 2016. Most investors expect the unemployment rate will fall more quickly.

 

But there are still inflationary pressure signal with increasing costs of raw materials, which is driven by the rise in oil prices in the months Asgustus, which pushed the cost of the manufacturing sector. Input prices rose in the fastest pace in two years, while the selling price by the manufacturer experienced a slower rise. The BoE has said it may raise interest rates depends on inflation expectations. The central bank will hold a policy meeting this week in September and will likely welcome the UK's economic recovery signal that extends from ketergantngan on consumption and housing loans before.

[mynameisandhy]

News and Review of European Economic Zone (Switzerland)

 

Swiss Franc Exchange Rate Limits 'Fruitful Sweet'

Tuesday, September 3, 2013

 

Swiss economy managed to avoid the recession that hit the neighboring country to record growth over the full year, underlining the importance of boundary exchange of the country as the second year. Swiss gross domestic product rose by 0.5% in the second quarter from 0.6% in the first quarter, according to the Secretariat for Economic Affairs in Bern today. Economists expect GDP growth of 0.3%.

 

Since the Swiss National Bank imposed a limit on the franc exchange rate of 1:20 per euro on September 6, 2011, the economy recorded a contraction just as much as one quarter, while the euro area countries only rose from the debt-stricken 18-month recession in the last quarter. Given the importance of maintaining price stability and the possibility that the euro zone crisis will return spread, limit the exchange rate is still the right policy, SNB President Thomas Jordan said in an interview with a Berner Zeitung yesterday.

 

"It's clear they are successful, they have to get what they want which is to minimize the risk of deflation," said Daniel Hartmann, an economist at Bank Bantleon in Zug. "At first, the move was greeted with skepticism by the market. There is concern that the limit will not be controlled, impenetrable or SNB should buy a lot of euros and are financially exposed in large numbers. "

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Pound for bankruptcy Post UK PMI data released

Tuesday, September 3, 2013

 

The pound rebounded against the euro for a fifth day after a report showed the UK construction sector PMI rose for the fourth month back in August, reaching its highest level in nearly 6 years. Sterling hit a 3 month high against the euro ahead of the Bank of England policy meeting this week.

 

Activity in the UK construction sector rose to 59.1 last month from 57 in July, according to Markit Economics and the Chartered Institute of Purchasing and Supply. Economists expect the PMI to be at 56.9 elvel. The pound was also supported by Verizon Communications Inc. kesepakangan. to buy the 45% stake owned by Vodafone Group Plc (VOD) at Verizon Wireless 130 billion dollars.

 

"The pound was supported by the assumption that the data is much improved in recent weeks," said Jeremy Stretch, head of currency strategist at Canadian Imperial Bank of Commerce in London. "The market seems to have realized that they maintain a short position in sterling too long. News from the Vodafone also helped. "

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Being in the UK Construction PMI Highest Level Since September 2007

Tuesday, September 3, 2013

 

UK construction sector activity grew at the fastest pace in nearly 6 years in August, fueled by the construction of settlements, according to a survey on Tuesday, an additional signal that the UK's economic recovery is accelerating. Construction sector PMI index from Markit / CIPS rose to 59.1 last month, its highest level since September 2007, from 57.0 in July, holding above the 50 level that indicates growth for the fourth month. Economists estimate there are slight slowdown in the growth rate of the construction sector.

 

While anxiety that Britain will face a bubble in the housing sector, driven by the government stimulus is still there, the PMI data showed the pace of settlement construction output grew rapidly towards the fastest pace since June 2010. Analysts have warned that without growth in the construction sector, the government helped facilitate access fatherly buyers market may finally be pushing property prices up. PMI data also shows the construction of civil engineering scored its best monthly performance since September 2007.

 

"Recent construction PMI data is another indication that the additional performance of the UK economy over the summer was awesome," said Tim Moore, senior economist at Markit. "The sharp rise in civil engineering activity indicates that the level of demand for the public sector have joined the settlement as a key factor driving the growth rate of construction output in August."

[mynameisandhy]

News and Review of European Economic Zone (Ireland)

 

Economic Recovery Service Sector chock Ireland

Wednesday, September 4, 2013

 

Symptoms of economic recovery in Ireland began to be seen in recent months. Assumption was further strengthened by the results of important economic data releases some time ago.

 

Stretching Irish service sector activity the better, and ride the fastest pace in more than six years. Positive picture in August last believed to be repeated again in the coming months because of the new demand trend is also being increased. Thus the conclusion of the purchasing managers' survey released this Wednesday (04/09). When combined with a similar survey released Monday, it was obvious the faster manufacturing activity, especially in the second half of 2013, which lasted just a moment.

 

Based on surveys and Markit Economics and Investec Ireland, rising service sector PMI was driven by increased tourist flows and export to overseas orders. Dependence of the volume of tourist visits to Ireland and overseas demand is big enough, if it refers to the sluggish domestic consumption amid budget cuts government programs.

 

Service sector purchasing managers' index rose to 61.6 in August from a record in July at 57.6. Achievement services PMI in August was the highest since February 2007, a period in which the disaster occurred in the property market yet. The euro exchange rate is seen at the position of 1.31607 per dollar.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK PMI Services Sector Back skyrocketed in August

Wednesday, September 4, 2013

 

A large number of new business last month triggered the most rapid rate of growth in the services sector in the UK for more than 6 years, according to survey results that seem to be stronger than the Bank of England's outlook on the economy. UK service sector PMI index by Markit / CIPS Wednesday rose to 60.5 from 60.2 in July, its highest level since December 2006, was well above the 50 level limit for the 8th consecutive month. Economists estimate the rate of growth will slow slightly to 59.0.

 

Booking levels at companies ranging from banks to restaurants located in the fastest pace since May 1997, where Tony Blair became the first serving Prime Minister. As with the previous month, the PMI data showed the UK business sector recovery is ahead of Europe, defeating the big countries are still struggling eurozone gaining momentum.

 

"UK service sector again scored a good performance in August, reinforcing the growth momentum since last July," said Paul Smith, senior economist at Markit. "Moreover, the recovery in the services sector, which is seen since the beginning of the current year has been solid." The composite PMI index of manufacturing and construction sectors last week, rose to 60.7 in August from 59.5, its highest level since the survey began in 1998.

[mynameisandhy]

News and Review of European Economic Zone

 

Export sector and Expenditure Levels Helps Out Of Euro Zone Recession

Wednesday, September 4, 2013

 

Rebound in exports and the level of spending by the public and the government pull the eurozone out of recession in the second quarter of this year , according to data Wednesday , the first signs of recovery after the longest recession the European bloc . Rate of growth was stronger than expected from Germany to Portugal to help the euro zone economy to expand by 0.3 % in the second quarter , according to EU statistics office Eurostat .

 

Assign it to the level of exports of other parts of the world rose sharply in the second quarter after six months of declining sales , while the level of government spending recorded a positive contribution for the first time since the end of 2009 three drag Greece into the euro zone debt crisis . Softening of the tightening policies , according to many economists is the cause of the longest recession in the euro zone is followed by the first quarterly increase in the level of public spending since the end of 2011 .

 

Cuts in public sector spending from education to health aims to cover the budget shortfall to swell , but the unemployment rate is at a record high which means that people in Europe are reluctant to shop and urged the company to cut output and number of employees . Fragility of the euro zone was evident in the low level of public spending in Europe in July , where the volume of retail sales rose only 0.1 % , according to Eurostat . It can not offset a decline of 0.7 % in June and is under economists' expectations for a gain of 0.4 % . Currently ekonm expect the economy will continue to grow in the third quarter of this year , following the positive results of the business survey in August , but there are few economists who predicted the existence of a rapid recovery .

 

" We do not translate solid rise a second time as the beginning of a strong recovery , " said Christoph Weil , economist at Commerzbank . " Of all of them , the balance of the government is still not fully recovered , and a large number of countries face a bigger problem . "

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Unemployment rate soars in Q2

Thursday, September 5, 2013

 

French unemployment rate in the second quarter of this year rose to levels not seen since 1998, as the second biggest economy in the euro zone is struggling to create jobs, is shown in a subset of the statistics on Thursday.

 

The unemployment rate in France rose to 10.9% in the second quarter from 10.8% in the first quarter, said national statistics agency Insee. Excludes outside French territory, the unemployment rate was unchanged at 10.7%.

 

With the high level of unemployment, French President Francois Hollande pledged to reduce the unemployment rate by the end of this year.

[mynameisandhy]

News and Review of European Economic Zone (Greece)

 

Dijsselbloem: Third Greek Bailout Realistic

Thursday, September 5, 2013

 

Greece's financial problems will not end in 2014 and is still realistic to expect that Greece will require additional funding from the euro zone before it can re-enter the market, according to the head of the eurozone finance ministers. International lenders estimate that Greece will need about 10-11 billion euros ($ 13.1-14.4 billion) from the second half of 2014 to be able to survive as well in 2015. However, a number of euro zone governments are reluctant to extend loans due to negative public opinion, and tired to give a bailout to other countries after the debt crisis that lasted for 3 years.

 

"Seeing the anxiety needs third Greek bailout program, it is clear that in spite of recent progress, Greek problems will not be resolved in 2014," said Jeroen Dijsselbloem the European Parliament. "Be realistic to assume that additional help will be needed in this program. In this context, the Eurogroup has indicated that it was willing to provide sufficient assistance program for Greece at the moment and so on until the Greek re-gain access to the market," he said.

 

Dijsselbloem, who is also the finance minister of the Netherlands, said that when the Greek public finance data for 2013 available in April 2014, the euro zone may be considering further support for the Athena. "Last year the Eurogroup agreed to consider additional measures if needed, such as a further reduction in interest rates on Greek loan facility ... if Greece managed appropriately qualified," said Dijsselbloem. "We are not yet in a position to assess whether Greece meets the requirements until April of next year," he said.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

Level factory orders in Germany Fades

Thursday, September 5, 2013

 

Levels on factory orders in Germany fell in July after the demand had received a boost from the Paris Air Show earlier month. The level of orders after adjusting for seasonal movements and inflation, fell by 2.7% from the revised June showed an increase of 5%, according to the Ministry of Economy in Berlin today. Economists forecast a decline of 1% in July. The level of orders rose 2% darisetahun ago, when adjusted for the number of working days.

 

German economy is Europe's largest economy expanded 0.7% in the second quarter, helping the euro zone to emerge from the longest recession. The manufacturing sector expanded and the level of business confidence rose to a 16-month high in August, indicating that the recovery is accelerating as Germany prepares for parliamentary elections 22 September stairs later.

 

"The decline in the number of orders is expected because the number of orders the previous month boosted by large orders," said Gerd Hassel, economist at BHF Bank AG in Frankfurt. "The recovery is still ongoing and will certainly continue."

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

UK Industrial Output Flat in July, Deficit Widens

Friday, September 6, 2013

 

British industrial output flat in July and the trade deficit widened sharply, according to government data on Friday, dimming the good economic data recently. Output of the industrial sector, which covers one-sixth of the UK economy is expected to rise as much as 0.1%. A narrower category of manufacturing increased by 0.2%, slightly below forecasts of 0.3%, although data for June was revised upward, according to the Office for National Statistics.

 

Signal stronger economic recovery in the UK has come up with a strong and fast in recent months. Growth rate of 0.7% in the second quarter may even be exceeded in the third quarter. Last month the Bank of England pledged to hold interest rates until the unemployment rate fell to 7%, something which is not expected to occur until 3 years from now, but the recent strength of the data led to speculation on traders that interest rates may rise as soon as next year.

 

Separate data showed the UK trade deficit widened to 9.85 billion pounds in July after narrowing sharply in June. Economists had forecast a gap of 8,153 billion pounds. Including the service sector, which usually prints surplus, trade deficit widened to 3,085 billion pounds. More than 2-fold in June trade deficit and the worst result since October 2012. Exports to non-European countries fell by almost 16%, the biggest monthly decline since January 2009. Monthly trade data is quite volatile, but data for June may undermine hopes that the economic recovery in the UK is growing fast and sturdy.

[mynameisandhy]

News and Review of European Economic Zone (Germany)

 

German Industrial Output Down in July

Friday, September 6, 2013

 

The level of industrial production in Germany fell more than forecast in July after rising in June, amplifies the signal that growth in the country's biggest economy runs in moderation. Industrial output fell 1.7% from June when it rose 2%, according to Dep.Perekonomian in Berlin today. Economists forecast a decline of 0.5%. The level of production fell 2.2% from a year ago when adjusted for the number of working days.

 

While revised down, the level of industrial production in June was the biggest gain since March 2012 as the German led eurozone separately out of the longest recession. Germany, which currently stands at last week's election campaign, the economy is expected to be a "normal and stable" until the end of the year, according to the Bundesbank on August 19. Export levels dropped in unexpectedly in July, data showed today.

 

"There is a very strong increase in the previous month and industrial output can not survive on the tempo, although the overall outlook remains positive," said Heinrich Bayer, an economist at Deutsche Postbank AG in Bonn. "The level of economic growth in Germany could be considered completely stable." Germany's manufacturing sector output fell 2.1% in July, with the production of investment goods fell 3.4%, according to a report today. Construction output rose 2.7%, while energy output fell 2.9%.

[mynameisandhy]

News and Review of European Economic Zone

 

ECB: LTRO Payment Increase Next Week

Friday, September 6, 2013

 

The refund loans obtained through the Euro zone banking Long Term Refinancing Operation (LTRO) will increase next week, after declining for most of the month of August, according to the European Cental Bank reported on Friday.

 

Based on data from the ECB, as many as 5 bank will return the € 3.7 billion ($ 4.87 billion) loan funds obtained through the LTRO first phase in December 2011. While 2 other banks will do reverse € 2.2 billion in loans LTRO 2nd stage which was launched 2 months later.

 

With so total loan funds to be returned in the Euro zone banks next week to reach € 4.6 billion, well above the record low of € 305 million has been reached in the last week. Since the beginning of this year, there were approximately € 325.9 billion from € 520 billion LTRO funds disbursed by the ECB has been restored.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Central Bank Third Quarter GDP Revised Up

Monday, September 9, 2013

 

French Central Bank today revised its views on national economic growth estimate for the third quarter. Post-revision, French gross domestic product is expected to grow 0.2% over the second quarter record.

 

In previous projections, the Bank of France predicted the national economy grew 0.1% in the third quarter. But after reflecting on some important indicators, the monetary authorities are optimistic growth could be stronger again. In the second quarter ago, the French economy grew 0.2%, ending the economic slowdown in the previous two quarters.

 

The survey results Bank of France business confidence showed a significant strengthening in some sectors. Delivery rate improved products abroad and the amount of supplies began to diminish. Business people are optimistic economic activity increased starting this September. The euro exchange rate is currently observed at 1.3172 per dollar positions.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italy Ready to Face Political Risks

Monday, September 9, 2013

 

Italy Senate committee will hold a meeting today to consider whether to issue a Silvio Berlusconi of parliament. If the Senate decides Berlusconi had to get out of the parliament then this can bring down the coalition government and push Italy into political crisis. Officials People of Freedom (PDL) party led by Berlusconi, has threatened to withdraw support from the coalition government if Berlusconi's Italy expelled from the Senate.

 

Decision process may last for several weeks. Of the 23 members of the committee at least 14 members of parliament want Berlusconi out of Italy. Italian government bond borrowing costs have increased as financial markets worried about political risk 3 biggest economies in the euro zone. Businesses have also warned the Italian political turmoil can remove the economic recovery process.

 

Meanwhile, the euro has not changed much in the Asian session. EUR / USD is now trading 1.3172; still near Friday's closing level of 1.3175

[Scarlett Mason]

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[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian Recession Still Continues in Q2

Tuesday, September 10, 2013

 

Italian economy contracts more than forecast in the second quarter, with shrinking 0.3% of the first 3-month period in 2013, according to the national statistics agency Istat reported Tuesday. Economists had expected GDP Italy will confirm decline 0.2%. At an annual rate, the 3rd largest economy in Europe is contracting 2.1% in the April-June period.

 

However, if the judge Istat 8 consecutive quarterly contraction that has created the longest post-war recession began to show signs of abating, especially due to the rise of the export sector in the early fall. Foreign trade contributed 0.4% increase in Italian GDP 2nd quarter, up slightly from the previous 3-month period and were able to offset the impact of the inventory. Household consumption posted a decline of 0.3%, while public spending and investment observed stable. Previous investments have been under pressure all over the last 2 years, with a decline of about 20% from the level in 2008. So that the stabilization has brought investment prospects brighter.

 

The Italian government itself expects if the period of economic contraction will not continue and will probably re-record growth at the end of this year. Government is scheduled to release its fiscal projections for economic growth and on the 20th September.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Comments Osborne 'Maintain' Rally Sterling

Tuesday, September 10, 2013

 

Sterling soared to 12-week highs against the U.S. dollar on Monday as Chancellor of the Exchequer, George Osborne, said that the UK economy has rebounded and the center is at the early stages of recovery. Sterling appeal continues to rise following the UK data shows a consistent reinforcement to encourage investors begin to anticipate a rate hike Bank of England is much faster. Sterling was also supported by the prospect of capital flows from M & A deals worth $ 2.1 billion between the Japanese company, Suntory Beverage & Food Ltd.., With GlaxoSmithKline Plc.

 

"Sterling holds the potential to continue rising in the short term, but we are approaching the $ 1.5740 level that can be considered to sell," said Morgan Stanley analyst.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Being British Unemployment Rate Dropped 7.7%

Wednesday, September 11, 2013

 

Britain's unemployment rate unexpectedly declined in a period of 3 months to July. Report of the Office for National Statistics (ONS) on Wednesday showed the unemployment rate fell to 7.7% from 7.8% in the previous 3-month period, over 24,000 British citizens out of the workforce.

 

Decline in the unemployment rate could potentially intensify market speculation that the Bank of England will be forced to raise interest rates sooner than what was projected in the future policy guidelines.

 

The unemployment rate has been a key indicator to determine the prospects for future policy after the BoE said it would wait until the unemployment rate drops to 7% before considering raising interest rates from a record low of 0.5%. Britain's unemployment rate last seen under 7% in February 2009.

 

Labor market report on Wednesday also showed jobless claims fell by 32,600 in August to the lowest level since January 2009.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Sterling Flat Waiting Unemployment Claims Data

Wednesday, September 11, 2013

 

Sterling traded flat against the dollar ahead of UK unemployment benefit claims data released today. Sterling rose earlier after three consecutive days of data non-farm payrolls on Friday released mengewakan.

 

In addition to the comments of the Exchequer, George Osborne, also strengthens sterling. Osborne said that the UK economy has rebounded and the center is in the early stages pemuliah. While yesterday's trading sterling rose to near the highest level in the last three months, buoyed by signs of recovery in the UK housing market pushed expectations of monetary policy tightening sooner.

 

Sterling is currently traded in the range of 1.5722 to 1.5740 intraday highs. Jobless claims data will be released this afternoon will be a significant driver of sterling. If the claims data is released lower than expected then sterling will rise, and vice versa.

[mynameisandhy]

News and Review of European Economic Zone (France)

 

French Inflation Up in August

Thursday, September 12, 2013

 

The consumer price index or inlfasi France rose in August from July, led by an increase in prices of clothing and shoes. French Bureau of Statistics said inflation in the country with the second largest economy in the euro zone rose 0.5% from the previous month.

 

The increase was slightly below the forecast of economists surveyed by Dow Jones Newswires was 0.6% for the month, and 0.9% for an annual. Clothing and footwear prices rose 6.9% in August from July, while prices of manufactured products rose 1.1%

 

Euro managed to trim weakening after the data was released, EURUSD is currently trading around 1.3308 after touching 1.3297 intraday lows.

[mynameisandhy]

News and Review of European Economic Zone

 

Eurozone Industrial Output Drops in July

Thursday, September 12, 2013

 

Productivity of the factories in the euro zone fell to its lowest level in more than a 3-year in July, sparking fresh doubts about the 17-nation bloc kemampun in sustaining moderate economic recovery.

 

Figures published the European Union's statistics agency, Eurostat, on Thursday showed euro zone industrial output fell 1.5% from June. Economists had expected euro zone industrial output will be posted a modest gain of 0.1%.

 

The biggest decline since September of last year that indicates if the manufacturing sector has recorded a bad start at the beginning of the 3rd quarter. Thus potentially faltering economy fueled speculation will block Euro 3-month period last year, after a rise of 18-month consecutive decline in the 2nd quarter.

 

Substantial reduction in the output of factories in Germany, Italy and France are responsible for the fall in July. 3 euro zone's largest economy accounts for about two thirds of the total output of the industrial sector.

[mynameisandhy]

News and Review of European Economic Zone (Italy)

 

Italian Industrial Output Back Down, Erode Hope Recovery

Thursday, September 12, 2013

 

Industrial output in Italy is much weaker than forecast in July, down by 1.1% and eroding hope that Italy might be able to rise from the longest recession in the third quarter. Once the signal is pretty good from the business sector and consumer sentiment, industrial output in July, which scored the sharpest decline since November last year, is the first important part of related data in the third quarter.

 

"There is no decline in one sector alone, output declined in each of the main sectors except textiles and signaled no recovery here," said a spokesman for the national statistics bureau ISTAT. Data is much worse than economists' forecasts for a gain of 0.3%. Industrial production data showed a close correlation with gross domestic product in Italy.

 

Countries in the euro zone's largest economy has been in recess since mid 2011 and this week's second quarter GDP was revised down to show a decline of 0.3%. But the euro zone as a whole managed to come out of recession in the second quarter. "This data is not good, but I think Italy will be out of recession by the end of this year," according to Marco Stringa economist at Deutsche Bank. "Italy's economy is very fragile from weaker recovery prospects of other euro zone countries," he added. In the 3 months to July, output fell by 0.5% from the previous 3 months. This data is bad news for the coalition government Enrico Letta is now being fragile, which in recent weeks insisted that Italy is ready to overtake the other eurozone countries to come out of the recession.