JP Morgan AM: Eurozone business demand for credit at its lowest level since 2008
JP Morgan AM: Eurozone business demand for credit at its lowest level since 2008
Recent European Central Bank survey data showed that the business demand for credit index fell to -37.9, the lowest reading since 2008.
Historically this indicator has provided a read on the direction of real economic activity. However, the latest PMI business survey indicates a better economic outlook than the lending survey. While manufacturing has suffered, resurgent services activity has kept total economic activity expansionary. This divergence in the surveys means the outlook is more uncertain than usual. Given this uncertainty over the path ahead, we continue to believe that portfolio diversification across both asset classes and regions remains crucial.
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