Is the euro-zone recovery back on track?

Any economic effects of last week’s tragic terrorist attacks in Brussels clearly pale into insignificance compared to the loss of life and social consequences. But the direct economic impact seems likely to be quite small.

Otherwise, survey data released in the past week have offered some reassurance that the falls in sentiment at the start of the year related partly to fears about the global economy, which have since eased. However, the continued decline in consumer confidence supported our view that the spending recovery that boosted growth last year is set to fade.