Some Good News

For once, small but good:

Growth in European service industries, which account for about one-third of the euro-region economy, unexpectedly accelerated in May to the fastest pace in seven months.

An index based on a survey of about 2,000 purchasing managers of companies including airlines and banks compiled by NTC Research Ltd. for Reuters Group Plc rose to 53.5 from 52.8 in April. The median forecast by 27 economists surveyed by Bloomberg News was for a decline to 52.5. A reading above 50 indicates expansion.

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About Edward Hugh

Edward 'the bonobo is a Catalan economist of British extraction. After being born, brought-up and educated in the United Kingdom, Edward subsequently settled in Barcelona where he has now lived for over 15 years. As a consequence Edward considers himself to be "Catalan by adoption". He has also to some extent been "adopted by Catalonia", since throughout the current economic crisis he has been a constant voice on TV, radio and in the press arguing in favor of the need for some kind of internal devaluation if Spain wants to stay inside the Euro. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again".

3 thoughts on “Some Good News

  1. “European service industries … account for about one-third of the euro-region economy”.

    One of the arguments in favour of liberalising services under the Bolkestein directive has been that services represent 70% of European economic activity. So I’m curious as to how NTC (who are known for the careful way they do their research) calculates this figure of one-third.


  2. Some companies are benefiting from the weak economy by offering their services at lower prices than their competitors.

    This seems to be either totally trivial or another brilliant piece of Bloomberg analysis 😉

  3. “has been that services represent 70% of European economic activity”

    Yeah, I’ve been thinking about this too. There is obviously some difference between eurozone and EU, since Britain, with internationall the most important services sector is out, and the med club with the low value weighting services are in. But still.

    Normally in an OECD economy services represent around two thirds these days. I’ll keep my eyes out for something from Eurostat :).

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