Eurozone: Already passed the peak of the economic cycle? - Natixis

Available cyclical indicators seem to show that we have already passed the peak of the euro zone’s cycle and it is now behind us, according to Patrick Artus, Research Analyst at Natixis.

Key Quotes

“The cyclical slowdown may be explained by:

• The hiring difficulties in the euro zone;
• The normal investment cycle;
• The disappearance of the effects of the expansionary monetary policy;
• The rise in risk aversion.”

“If there is a cyclical slowdown in the euro zone:

• It is normal that the peak of the equity market also is behind us;
• The ECB, which has not started its monetary normalisation, will face problems.”