Tag: Eurozone

Confidence in the eurozone economy ticked up in March, albeit still at subdued levels according to a survey of consumers and managers.

The composite PMI increased from 49.2 to 49.9 in March, the best reading since June last year.

No changes to the initial estimates as euro area inflation eases further in February but not as much as hoped. Core annual inflation continues to sit above 3% and may be tough to fall much more meaningfully in the months ahead.

Inflation in the 20-nation euro zone eased to 2.6% in February, flash figures showed on Friday, but both the headline and core figures were higher than expected.

Another mild winter pushing down natural gas prices is helping the eurozone economy to come out of the doldrums, though 2024 growth is likely to remain subdued.

Bank lending to the private sector in the eurozone has fallen for the first time in five months, signalling continued weakness for the region’s economy as record high interest rates continue to restrict demand.

The bloc sharing the euro has seen its economy practically motionless in the last year as it continues to stagnate.

The euro zone economy stabilized in the fourth quarter of 2023, flash figures published by the European Union’s statistics agency showed on Tuesday.

Eurozone business activity fell in January for the eighth straight month, but the rate of decline slowed from December, a closely-watched survey showed Wednesday.

Industrial output in the eurozone contracted for the third month in a row November, reflecting the continued downturn in the sector.

The euro zone may have been in recession last quarter and prospects remain weak, European Central Bank Vice President Luis de Guindos said on Wednesday, adding that the recent rapid slowdown in inflation is likely to take a pause now.

Eurozone inflation rose to 2.9 per cent in December, reversing six months of consecutive falls and raising questions over how soon the European Central Bank would start cutting interest rates.

Economic activity in the eurozone contracted in December for the seventh month in a row, at a stronger pace than in November, amid weakening demand and a gloomy economic outlook, data from a purchasing managers’ survey showed Friday.

The downturn in manufacturing activity softened slightly in November and business confidence is at a three-month high. Experts nonetheless say a recovery is far-off.

The broad-based downturn in euro zone manufacturing activity eased slightly last month but the sector remained deeply rooted in contractionary territory, prompting factories to trim staffing levels for a sixth straight month.

Annual inflation in the euro zone cooled to 2.4% in November from 2.9% in October, well below foreacasts.

FRANKFURT, Nov 10 (Reuters) – Euro zone inflation could tick up in the coming months but European Central Bank interest rates held at their current level for long enough could still get price growth back to the 2% target, ECB President Christine Lagarde said on Friday.

MADRID, Nov 7 (Reuters) – The euro zone’s economy is likely to contract slightly or at best stagnate in the fourth quarter, ECB’s vice president Luis de Guindos said on Tuesday.

LONDON, Nov 6 (Reuters) – The downturn in euro zone business activity accelerated last month as demand in the dominant services industry weakened further, a survey showed on Monday, suggesting there is a growing chance of a recession in the 20-country currency union.

Core inflation — which excludes volatile food and energy prices — dropped to 4.2% year-on-year in October from 4.5% in September.