Eurozone Weakness

Earnings Reports Hitting Heavy

During the first quarter of 2018 growth in Europe sank to its lowest level in 18 months. While Gross Domestic Product (GDP) gained 0.4% in the quarter this is a 42.85% decline over the 0.7% growth experienced over the first quarter last year. Several problems plagued the Eurozone including severe winter weather and general strikes dragged the economy down. Yesterday was a bleak day on the Euroland economic calendar with negative Swiss retail sales and a serious decline in Swiss consumer confidence. Italian manufacturing was weak along with its unemployment. As of press time we are waiting on the EU economic forecasts for CPI and PPI and the British service PMI. Despite the grim economic reports, financiers and economist we have surveyed are of the opinion that things will improve in the 2^nd quarter and lend strength to the Euro.