Euro-zone activity and sentiment remain subdued

Economic growth in the euro-zone is likely to pick up a bit heading into next year, but we suspect that the improvement will be more muted than most anticipate. And the data released this week show no meaningful signs of an upturn at the end of Q3. Next week we are likely to learn that the euro-zone’s unemployment rate was unchanged in August, while in September economic sentiment remained subdued and inflation edged up.