Great Graphic: Euro Area GDP

The euro area provided its first estimate of Q1.  The 0.2% decline in GDP comes after a 0.6% contraction in Q4 and confirms the euro area as the weakest among the high income  regions.  It is the sixth consecutive quarterly contraction, a record of dubious distinction.  

This Great Graphic was posted on lemasabachthani blog. The first chart shows how the PMI does a fairly good job tracking the region's GDP.   The April PMI readings indicate Q2 is off to a soft start.  

The second chart shows the changes in the overall levels of GDP, index to 2005 (=100).  That German GDP has surpassed its pre-cycle peak is seems well appreciated.  The magnitude of Italy's under-performance may be somewhat surprising, though its weakness is understood.   

With such high (recorded) unemployment, one might have expected a worse performance by Spain, though it has begun more clearly under-performing.  Perhaps most remarkable is how average (EMU level) that Franc's performance has been.