What's going on?

Fresh data released on Tuesday showed that the eurozone economy grew 1.2% larger in the first quarter than it was a year ago � a low figure that was still higher than predicted.

What does this mean?

The 19 euro-using countries have had a tough start to 2019. Manufacturing in Europe�s biggest economy, Germany, all but ground to a halt thanks to disruptions plaguing its crucial auto industry; the French economy was br�l�ed by ongoing protests; and Italy succumbed to a dreaded recession. Economists accordingly slashed their growth forecasts left and right � and the European Central Bank said it�d start offering commercial banks a fresh round of cheap long-term loans from September, hoping to get some money moving around and grow the economy.


But economic growth already started accelerating last quarter, with Italy expanding all of 0.1% and thus escaping recession. Investors will be breathing a sigh of relief � and wondering whether monthly surveys are as reliable as they�d thought.

Why should I care?

For markets: China giveth, China taketh away.

The eurozone�s better-than-expected economic growth last quarter might not have been a surprise to those looking east: China�s first-quarter economic growth surpassed predictions too. With an estimated 35% impact on the well-being of the eurozone economy (and 15% on the US�s), a rising Chinese sun should mean fair weather for Europe too. But new Chinese data suggests it may have been a false dawn.

The bigger picture: Our survey says� manufractured.

Two closely watched surveys of Chinese manufacturing activity on Tuesday showed that the country�s strong first quarter was followed by a flimsier April. According to both reports, manufacturing activity barely grew � confounding expectations that government support would maintain momentum. US-China trade negotiations are currently on the home straight, and it�s likely that both countries are watching one another�s economic data for any signs of weakness. That said, Europe just proved survey data isn�t the be-all and end-all…