In its Economic Bulletin published today Thursday, the European Central Bank (ECB) reveals details on the economic, financial and monetary evolution of the euro area.
Near-term economic prospects have deteriorated
Inflation continues to fall, but it is expected to remain too high for too long.
The near-term economic outlook for the euro area has deteriorated, largely due to weakening domestic demand. High inflation and tighter financing conditions are holding back spending.
Eurozone production is expected to rise moderately in the third quartermainly with the support of the services sector.
The job market remains strong. The unemployment rate remained at its record low of 6.5% in May and many new jobs are being created, especially in the service sector.
The Prospects for economic growth and inflation remain highly uncertain.
Upside risks to inflation include possible further upward pressure on energy and food costs, also related to Russia’s unilateral withdrawal from the Black Sea Grains Initiative.
Global activity continued to hold up in the second quarter, but survey data has started to show signs of losing momentum.
The global divergence between the service and manufacturing sectors widened further in June.
Near-term world trade prospects are clouded by weak merchandise trade, while services trade continues to improve.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
