Hugues Chevalier, Economist
After the sharp production slowing down of these last months, Eurozone economic conditions deterioration seems to have halted. And an improvement looks to be emerging for the second half of the year. Indeed, industrial production should have reached its bottom now. Despite a continuing decline in new orders for the industry, which has still declined by almost 8% in February, the contraction in the key automotive sector is weakening. Moreover, the rebound in activity observed in recent weeks in China is expected to strengthen European exports over the coming months and reverse the actual negative trend. Finally, activity in the services continues to accelerate vigorously, which is favorable to all sectors, and especially for the domestic demand (consumption and investment) for the forthcoming months.