Eurozone Economic Confidence Drops
Eurozone Economic Confidence Drops

Eurozone Economic Confidence Drops

Eurozone Economic Confidence Drops

Eurozone economic confidence worsened more than analysts predicted in August in a sign that the reverberations of Britain’s decision to leave the European Union may finally be reaching companies and households.
An index of industry and consumer confidence fell to 103.5 from a revised 104.5, the European Commission in Brussels said on Tuesday. That compares with a median estimate of 104.1 in a Bloomberg survey of economists, and follows an unexpected increase in July.
With European Central Bank President Mario Draghi leaving it largely to economic data to fine-tune policy expectations before next week’s Governing Council meeting, the release provides a case for more stimulus to sustain the recovery and revive inflation. The International Monetary Fund has already cut its forecast for eurozone growth next year on the back of the UK’s Brexit vote, and the ECB will release new projections next week.
“The weakness in the August reading is broad-based across all countries, with some exceptions, and across sectors,” said Frederik Ducrozet, an economist at Banque Pictet & Cie SA in Geneva. “It’s another reason to be cautious and dovish for the ECB. Maybe not in the next weeks, but in the next months.”
Inflation in the currency bloc probably accelerated to 0.3% in August from 0.2% the month before, leaving it well below the ECB’s goal of just under 2%, according to a separate survey. Eurostat will release preliminary figures on Wednesday, along with jobless data that is expected to show the unemployment rate dropped to 10% in July.
Sentiment in the industrial sector fell to minus 4.4 from minus 2.6, the lowest level in 18 months, according to commission data. Confidence also slipped in services, retailing and among consumers, while a gauge for construction rose to an 8-year high.
Figures showed last week that confidence also subsided in the region’s two largest economies. Germany’s business climate as measured by Munich-based research institute Ifo unexpectedly declined the most in more than four years. Sentiment slipped in France, the nation’s statistics institute said.

Short URL : http://goo.gl/NttfJL
  1. http://goo.gl/NsosZd
  • http://goo.gl/JwjvA9
  • http://goo.gl/oSbYVq
  • http://goo.gl/OZplBV
  • http://goo.gl/XqRspZ

You can also read ...

Westinghouse Electric, the leading US nuclear fuel producer, said it relies on China for zirconium and zirconium powder  for use in nuclear fuel assemblies
A broad cross-section of US businesses has a message for the...
UK Business Pessimism Rising
Business leaders’ confidence in the British economy has fallen...
Budget Blowout a Hard Sell for Italy
Italy’s populist government has big plans for its first budget...
Turkey, Qatar in Currency Swap Deal
The central banks of Qatar and Turkey signed a currency swap...
Irish Economy in Post-Recovery Stage
The economy is in a strong position and has moved into a post-...
Brazil Food Co. Sells Subsidiary for $2.4 Billion
Brazilian meatpacker Marfrig Global Foods said on Monday it...
Argentina Lacks Options to Defend Peso
With interest rates sky-high and the economy heading for...
Greece Can Now Stand on Its Own Feet
Greece has successfully completed a eurozone bailout program...