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ECONOMICS COMMENTARY Apr 12, 2013

Eurozone industrial downturn shows signs of easing in first quarter

Eurozone industry picked up in February, but the underlying trend in the official data is still one of a sector in decline and in line with the PMI, which suggests the industrial downturn has eased compared to late last year but gathered momentum again in March. Any further downturn in the Eurozone PMI in the second quarter could be the trigger for policy action from the ECB, which stands ready to act - possibly with a cut in interest rates - if business conditions deteriorate further.

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