The latest data have provided further evidence of a marked slowdown in euro-zone economic activity. The key business surveys turned down in June, suggesting that growth in Q2 will nowhere near match Q1’s 0.8% gain. But despite the weaker outlook for activity, survey indicators of selling prices have risen further. With inflation itself already at 4%, the highest level in the history of the euro-zone, it is not surprising that the ECB plans to hike interest rates this month. But firmer evidence of slowing growth supports our view that this move will prove to be a one-off.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services