Europe’s Economic Surprise Index Reached Highest Level Since 2013
Europe has struggled with sluggish growth, political uncertainty, and lagging equity returns for much of the last decade. However, the pessimism may have gone too far. The Citigroup Economic Surprise Index — a measure of how actual economic data compares with consensus expectations — shows that Europe has been beating forecasts for several months, and at a greater rate than other major regions. While this does not indicate that all is right with Europe, it is a positive sign that the situation may not be as bad as it seems, and it could propel equities higher.
For more insight on what to watch for in Europe, read our latest article: “Here’s Why You Shouldn’t Give Up on International Stocks.”