Eurozone June current account report 18 Aug 2016
- prev revised up from +€30.8bln
- NSA +€37.6bln vs +€16.5bln prev revised up from +€15.4bln
- net investment flow +€21.4bln vs revised +€46.3bln
C/A surplus narrows for 2nd straight month but still a solid net investment flow, albeit lower than previous supporting my long-held view that the euro remains fundamentally underpinned.
Says the ECB:
The current account of the euro area recorded a surplus of €28.2 billion in June 2016.This reflected surpluses for goods (€32.9 billion) and services (€5.3 billion), which were partly offset by a deficit insecondary income (€10.1 billion). Theprimary income account was close to balance.
The 12-month cumulated current account for the period ending in June 2016 recorded a surplus of €347.8 billion (3.3% of euro area GDP), compared with one of €302.1 billion (2.9% of euro area GDP) for the 12 months to June 2015.
This development was mostly due to an increase in the surplus for goods (from €306.6 billion to €368.4 billion) and to a decrease in the deficit forsecondary income (from €134.8 billion to €123.4 billion). These were partly offset by decreases in the surpluses for both primary income(from €64.0 billion to €40.4 billion) and services (from €66.4 billion to €62.5 billion).
Full report here
