Eurocoin January 2013: Misery broadly unchanged isn’t a sign of stabilization

trueeconomics.blogspot.com / By Dr. Constantin Gurdgiev / Sunday, January 27, 2013

You might be forgiven for thinking that the euro crisis is over and that we are returning to the ‘Old Normal’ of growth, recovery, stability etc… Much of the recent commentary has been focused on the ‘restoration of markets confidence’ in sovereign finances, citing yields declines across the euro area.

I covered the latest data on sovereign yields from the CMA quarterly report for Q4 2012 here.

However, euro area remains a global (that’s right – global) growth laggard on par with the gravely sick Japan – as the IMF latest WEO update clearly shown (see details here).

And here are the most up-to-date data on leading economic growth indicator from CEPR and Banca d’Italia – the eurocoin – for January 2013:

• In January 2013 eurocoin stood at -0.23, an improvement on -0.27 in December 2012 and the highest reading since June 2012, but still in the negative territory.

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