USA: tighter conditions and lower demand for corporate credit as a warning signal. Eurozone: first signs of weakness on the labour market, gap between industry and services widening. China: the Chinese economy’s recovery already seems to be losing speed.
Chart of the month
While business sentiment in the services sector remains brighter, in industry it is deteriorating significantly, according to the Purchasing Managers’ Index and the ifo survey. Only four out of 22 sectors within industry have positive expectations for the next six months. Pharmaceutical manufacturers are the most optimistic. The greatest pessimism reigns amongst manufacturers of wood products excluding furniture. We think that the gap between industry and services will narrow over the next few months largely at the expense of service providers.