Italy stands out as a weak spot in yesterday’s bullish PMI and ISM data

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.

Source: Bloomberg

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...


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