Euro-area economic confidence slowed more than anticipated this month, adding to concerns that growth in the region is stalling.
(Bloomberg) — Euro-area economic confidence slowed more than anticipated this month, adding to concerns that growth in the region is stalling.
A sentiment gauge published by the European Commission slid to 94.5 from 95.3 in June. That’s the third monthly decline and worse than the median forecast in a Bloomberg survey of economists.
Sub-indicators for services and industry both decreased, while consumer expectations improved for a fourth month.
Indicators for the third quarter have been dire so far, with PMIs earlier this week showing contractions for the euro zone and its top two economies. Second-quarter GDP numbers earlier on Friday saw Germany exit recession, but failing to grow, while France managed a surprise acceleration thanks to a one-off in trade.
European Central Bank President Christine Lagarde on Thursday also warned of a deterioration of the region’s economic prospects — though that didn’t stop her institution hiking interest rates for a ninth consecutive time.
–With assistance from Kamil Kowalcze, Joel Rinneby and Barbara Sladkowska.
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