EURO ZONE

摘要

The Q3 expenditure breakdown confirmed steady 0.3% (q-o-q) growth for a second straight quarter. It was also a 0.3% showing for consumption while investment rose by 0.2%. Going into Q4, November's composite PMI suggests solid growth ahead, but the economy still faces political and economic headwinds. The Italian referendum ended in defeat for PM Renzi's constitutional proposals (page 15), representing an anti-establishment sanction by a populace tired of austerity and high unemployment. Italy's situation is by no means unique; the European Commission recently urged governments to be more fiscally accommodating. Meanwhile, inflation remained far short of the ECB's target of just under 2%, managing only 0.5% (y-o-y) in November. As expected, the ECB extended its bond-buying program at its December 8 meeting through to December 2017, but will start to taper the size of purchases from April onwards (from €80bn to €60bn). The markets have reacted with a bond sell-off.