The solid upswing continues to broaden across sectors and countries. Real GDP in the euro area has expanded for 16 consecutive quarters, growing by 1.9% year-on-year during the first quarter of 2017, according to Eurostat. This compares with the latest potential growth estimates for the euro area of just over 1%.1 Moreover, recent survey data point to a strong start to the second quarter.
For example, the composite output Purchasing Managers’ Index – which is strongly correlated with growth in the euro area – remains close to six-year highs in June. The forward-looking components of the survey continue to point to growth in the quarters ahead.