Remarks from ING in response to the data earlier today:
- outcome was in line with the consensus, so unlikely to have much market impact
- Manufacturing ... showed a 1.8% QoQ contraction in output
- construction and services sectors ... also contracted on a quarterly basis
- The gradual reopening of the economy should instil some more life into the domestic economy, but this negative spell is likely to linger for some time to come.
- That means the recovery will be mainly dependent on exports regaining their recent strength. We see nothing in this data warranting any changes to the current fiscal or monetary policy settings just yet