Great Graphic: Italy GDP and Composite PMI

Italy's economy expanded by the slightest of margins in Q4 13.  The 0.1% expansion is the first since Q2 2011.  The year-over-year contraction moderated to -0.8% from -1.9%. 

This Great Graphic, tweeted by Chris Williamson at Markit shows the how well its composite survey of purchasing managers tracks the quarterly GDP report.

Although the economy appeared to lose some momentum (December industrial production reported at the start of the week fell 0.9%, compared with expectations for a flat report, and January's manufacturing PMI slipped (53.1 from 53.3), a weak recovery likely remains intact.  The rise in the services PMI (49.4 from 47.9) ensured the composite PMI still rose. 

Italy's political theater is the overshadowing the GDP report, but this may have been one of the less market disruptive government changes in recent history.  Renzi will be the ninth prime minister since 1992 (only two of whom have been elected). 
Great Graphic: Italy GDP and Composite PMI Great Graphic:  Italy GDP and Composite PMI Reviewed by Marc Chandler on February 14, 2014 Rating: 5
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