EUR
Italy’s economy stagnated in the three months through December, failing to
rebound from its longest recession on record. Gross domestic product was
unchanged from the previous quarter when it dropped 0.1 percent. The median
forecast called for a drop of 0.1 percent. From a year earlier, GDP fell 0.3
percent. 

The euro region’s third-biggest economy may halt its slump in 2015 as both
domestic and foreign demands rise. The report was released after industrial

EUR
Italy’s economy stagnated in the three months through December, failing to
rebound from its longest recession on record. Gross domestic product was
unchanged from the previous quarter when it dropped 0.1 percent. The median
forecast called for a drop of 0.1 percent. From a year earlier, GDP fell 0.3
percent. 

The euro region’s third-biggest economy may halt its slump in 2015 as both
domestic and foreign demands rise. The report was released after industrial
output data showed a 0.4 percent increase in December. 

There might be some positive surprises in store for the Italian
economy as it benefits from lower oil prices and a cheaper euro that helps
exports, Finance Minister Pier Carlo Padoan said Feb. 9. As of the end of last
year, Italy’s economy had not grown since the second quarter of 2011. 

Italy’s GDP will expand 0.6 percent this year and 1.3 percent next, the
European Commission forecast last week. The projected rise for 2015 is the
second-lowest after Cyprus among the 19 members of the euro region. “Italy is
among the countries that are struggling hardest to make a start on the road to
recovery,” Bank of Italy Governor Ignazio Visco said in a speech, adding that
the economy may expand more than 0.5 percent this year. That’s above the 0.4
percent growth projected in a report published by the Rome-based central bank
last month. 

USD
Consumer confidence fell in February as gas prices started to rise from a
six-year low and damped Americans’ optimism about the economy. The University
of Michigan preliminary sentiment index decreased to 93.6 from a final January
reading of 98.1 that was the highest since the start of 2004. The median
projection called for no change from last month. 

Prices at the gas pump have climbed this month from a six-year low, and the survey
showed more Americans were less upbeat about the labour market after hearing of
dismissals in the oil patch. Consumers also said they were less enthusiastic
about making big purchases. 

The Michigan sentiment survey’s index of expectations six months from now
decreased to 87.5 from 91 last month. The gauge of current conditions, which
measures Americans’ views of their personal finances, fell to 103.1 in February
from 109.3 a month earlier that was the highest since January 2007. Americans
expected an inflation rate of 2.8 percent in the next year, up from 2.5 percent
in January. The average cost of a gallon of regular gasoline was $2.23 as of
Feb. 11. The price has edged up from an almost six-year low of $2.03 reached on
Jan. 25, according to motoring group AAA. 

Key
Announcements:
EUR – 10:00 : Eurozone Trade balance (Jan) expected to be better to 21.3B to
20.0B

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