Positive results from business surveys conducted in the Euro Zone as well as encouraging trends in the US all point to better prospects for the global economy. According to analysts, the modest economy that began in the single currency region has slowly gained momentum. The last quarter saw an end to the recession that gripped the euro zone for eighteen months. The European economy grew by 0.3%. Purchasing Managers' Index in the euro zone also showed growth.
Macquarie London Strategist Daniel McCormack observed, "The PMIs will confirm that pick-up we saw in the second quarter. All the evidence so far suggests that the trend has continued into the third quarter."
In the US, meanwhile, encouraging trends are still evident despite the sub-par recovery the world's largest economy has experienced. Retail sales had risen in spite of tax hikes and the housing market has held steady despite the rise in mortgage rates.
Salt Lake-based Albion Financial Group Chief Analyst Jason Ware said, "We're seeing continued strength in housing, which I think is key. Some data points have shown a slowing in activity, but I don't think we're going to pivot back the other way."
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