A second estimate published by Statistics Netherlands has shown that the Dutch economy shrank by 1.5% on a quarterly basis in the first quarter of 2020. In previous estimates, Statistics Netherlands reported a contraction of 1.7% on a quarterly basis. Compared to the first estimate, domestic investments in construction, among others, were revised upwards. Household consumption was also higher than initially assumed. The trade balance was adjusted downwards.
Market researcher Markit has reported that activity in the eurozone fell again in June 2020. The purchasing managers index (PMI) for industry came to 46.9. A reading below 50 indicates shrinkage. The PMI for industry did improve sharply in June compared to the previous month; in May it was still at 39.4. The PMI for the services sector amounted to 45.8 in June, up from 32.6 in May.
According to Angela Merkel’s chief economic advisors, the German economy will show signs of recovery from the summer of 2020. Growth expectations for 2021 are also positive. The German government’s advisory council expects a contraction of 6.5% in 2020. For 2021, economic growth is forecast at 4.9%.
The 6M Euribor decreased with 3 basis points to -0.26% compared to previous business day. The 10Y Swap increased with 2 basis points to -0.14% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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