There was a slew of PMI data released yesterday. And the ISM released it's manufacturing numbers for the US as well. Almost all of the data were bullish and supports the idea that this economic expansion has legs for the rest of 2018 and beyond.
What about Italy though?
If we're looking at the developed economies, Italy is the weakest link right now. And unfortunately, the PMI there was weak, the worst in two years and near the 50 recessionary mark.
Now, under normal circumstances, one would expect a government with this kind of weakness to try and add monetary or fiscal stimulus to boost demand. And indeed, with monetary stimulus already maxed out, the Italian government has talked of adding some stimulus to increase demand. But these initiatives fall afoul of the EU...
As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.
Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.