Euro area economic sentiment sees a further rebound in July
- July final consumer confidence -15.9 vs -15.9 prelim
- Prior -17.6
- July economic confidence 96.9 vs 96.0 expected
- Prior 95.0; revised to 95.4
- July services confidence 4.7 vs 3.8 expected
- Prior 3.2; revised to 4.2
- July industrial confidence -6.1 vs -7.0 expected
- Prior -7.7; revised to -7.5
This points to a continued recovery in euro area economic sentiment, with the confidence reading being the highest since February. That comes amid a continued rebound in both the services and manufacturing sectors. While still subdued, consumer confidence also picked up a little as reaffirmed by the final estimates.
Adding to this is a further decline in the consumer inflation expectations reading to 30.3 (previously 34.0). That marks the softest reading since February as well.
While the report here does point to some good news as sentiment recovers further, economic headwinds and challenges are still very much present as we look to navigate through the second half of the year.
The uncertainty from the US-Iran conflict and rising energy prices again will pose greater adversities for euro area economies, not least with the ECB needing to raise interest rates to counteract rising price pressures too.
The good news for now is that at least stagflation risks are off the table amid some added economic resilience in Q2. That being said, the conversation is one that will not go away so long as the Middle East situation remains as it is as we look towards the autumn and winter months.
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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