PwC/AGEFI Monthly Barometer - May 2017

A slight drop in morale among Luxembourg manufacturers has caused our barometer to fall by one point, although Eurozone analysts and investors remain fairly confident.


  • Luxembourg's industrial output fell by 5.6% from December to January
  • Inflation in the service sector has rebounded strongly, reaching 1.5% in March 2017.
  • Government tax receipts recorded an annual increase of 5.9%, or 200 million euros at the end of the first quarter.

The Eurozone:

  • Industrial output in the Eurozone stagnated between December and February
  • According to the IMF, 75% of small European banks are not sufficiently profitable
  • Public deficit in EU Member States continues to fall (1.4% of EU GDP end of 2016)
  • The capital markets were in a joyous mood following the results of the first round of the French presidential election.
  • France's GDP grew by only 0.3% in the first quarter, held back by foreign trade.

The World:

  • The IMF has revised its global growth forecasts upwards, to 3.5% for 2017.
  • China's GDP growth held at 6.8% in the first three months of 2017.
  • Confidence in the capital markets seems disconnected from economic reality
  • The US Fed will postpone its upcoming increase in federal funds rate until June.
  • The UK's GDP grew by only 0.3% in the first quarter of 2017.

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