ECB president Jean-Claude Trichet plans on hiking rates largely because of growth in Germany. However, rising interest rates will not do much good for suffering PIGS like Spain.
Courtesy of Google translate, please consider Spain led the downturn in construction in the EU in FebruaryProduction of construction sector fell by 31.3% in Spain in February, compared with the same month of 2010, representing the largest decline across the EU, according to data from Eurostat.For the original article in Spanish, please see España lideró la caída de la construcción en la UE en febrero
While in the whole Union sector activity rose in February by 2.9% in Spain fall again exceeded 30%, after declining in January reached 40%.
After Spain, the country with the largest drop in construction was Slovenia, with a drop of 20%. On the opposite side stands the development of the sector in Germany, an increase of 56.3% and in Poland, where it increased by 21.3%.
Sooner or later I expect the market will realize that the Spanish economy is not going to recover and that Spain too needs a bailout.
Mike "Mish" Shedlock
Click Here To Scroll Thru My Recent Post List
Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.