Euro zone economic sentiment continued to worsen as expected in July on less optimistic industry, services, retail trade and construction and inflation expectations among companies as consumers decreased as well, data showed on Tuesday.
Eurozone business activity picked up a touch this month but firms were at their least optimistic in nearly five years as they worried about slowing global growth and the impact of trade wars, a survey showed.
The eurozone’s economic downturn is proving a boon for policymakers who are jostling to succeed Mario Draghi at the bloc’s central bank — offering them an opportunity to tout favored policy proposals and burnish their credentials for the job.
Eurozone economic sentiment dipped for an eighth consecutive month to a new two-year low in February as managers in industry became more downbeat about inventories, order books and production expectations.
Analysts expect the European Central Bank (ECB) to acknowledge growing risks to the eurozone economy on Thursday while sticking to its patient course, kicking off a year that could see the Frankfurt institution mostly marking time.
The eurozone needs a few mega banks that can compete on the world stage, and banks need a deposit insurance scheme, Daniele Nouy, the head of the European Central Bank’s supervisory board, said on Wednesday.