Euro Area: Downward trend continues

Sentiment indicators for the eurozone continued to decline in November. So far, slower economic momentum in the eurozone has been primarily attributed to the unfavorable development of industry. However, the service sector - the backbone of the current upswing - is far from enjoying immunity and increasingly coming under pressure.

Economic growth slows further

With today’s GDP figures, eurozone growth of just over 2% should still be achievable. 

Moderate start to H2 2018

Today's sentiment indicators for the eurozone economy point to a moderate start to the second half of 2018.

Longer soft-patch?

The purchasing managers' indices published today fuel doubts about a significant economic acceleration in the second quarter.

Just an economic soft-patch, not the end of the upswing!

Today’s stabilization in eurozone purchasing managers' indices (PMI) is reassuring after recent economic indicators for the region came in below expectations pointing to a marked deceleration in economic momentum.

Stable price development

Despite the continuing improvement on the labor market and increased wage dynamics, we do not see any inflation risks arising in the eurozone from the domestic side.

Economic upswing not at risk

The setback in today's sentiment indicators is not the beginning of the end of the current economic upswing.

EMU economy ahead at full speed

The current economic momentum in the euro area (new GDP data, EU Commission sentiment indicators) clearly shows in retrospective that the loose ECB monetary policy is having an effect.

It's downhill from here for the UK economy

The preliminary Q4 growth estimate seems to underline the British economy’s resilience 18 months after the Brexit vote.