Business surveys point to continued recovery

The business surveys for August published this week provided some reassurance that the euro-zone economy is continuing to grow at a decent pace. And the decline in the forward-looking components is not too worrying since the pace of growth was always likely to tail off as the economy got closer to "normal". Next week, we expect flash inflation data for August to show big rises in the headline and core rates, due to base effects related to the timing of summer sales last year.