Eurozone heads for recession as energy crisis escalates

HSBC Global Research with the note:

Key Points:

• Eurozone Q2 GDP growth was revised up from 0.6% to 0.8%, with strength coming from a broad set of countries and 1.3% growth in consumption…
• …suggesting that the PMIs, rather than the consumer confidence surveys, have given a better steer on growth…
• …but the intensifying energy crisis nevertheless looks set to send the eurozone into recession this winter

Facts

Eurozone GDP growth in Q2 was revised up from 0.6% to 0.8% q-o-q. The initial print, published on 29 July, had come out at 0.7%, then was revised down to 0.6% on 17 August. So now, growth is estimated in excess of that unexpectedly strong initial outturn (originally, consensus had been for 0.2% growth).