Home NewsStock Market News Euro zone consumer confidence rebounds in August but remains near record low | Anue – Eurasian Shares

Euro zone consumer confidence rebounds in August but remains near record low | Anue – Eurasian Shares

by WOOWinvest
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Euro zone consumer confidence rebounds in August but remains near record low | Anue – Eurasian Shares


According to the latest data released on Tuesday (23rd), the preliminary reading of the euro zone consumer confidence index unexpectedly rebounded in August, but it was still below the level during the new crown epidemic, because the rising cost of living burdened households and energy shortages affected economic activity.

Data showed that the euro zone’s consumer confidence index rose to -24.9 in August from -27 in July, beating market consensus estimates and slipping slightly to -28.

The European economy is facing a recession as inflation hits new highs and the risk of Russia cutting off energy supplies mounts. Data released earlier on the same day showed that the Eurozone’s Composite Managers Purchasing Index (PMI) remained below the line of prosperity and decline for two consecutive months in August, the economic sentiment continued to decline, recession fears intensified, and the European Central Bank (ECB) will raise interest rates in the future. will be more difficult.

The initial value of the Eurozone composite PMI in August was 49.2, higher than the expected 49, lower than the previous value of 49.9, a new 18-month low; the initial value of the services PMI was reported at 50.2, lower than 50.5 and the previous value of 51.2, a new 17-month low ; The initial value of the manufacturing PMI was 49.7, higher than the expected 49, lower than the previous value of 49.8, a 26-month low.

Sentiment across the euro zone fell for two straight months in August, while new orders fell further, mainly due to a further contraction in manufacturing activity, and a rise in the cost of living denting demand for services, which kept activity in growth territory. On a country-by-country basis, the contraction in business activity in the euro zone is mainly due to the two major economies, Germany and France.

Despite headwinds to economic growth, the ECB has been steadily raising rates since its first two-yard rate hike (50 basis points) in July. ECB officials may offer some insight into the next steps as they head to the Federal Reserve’s annual meeting in Jackson Hole this week.

Chris Williamson, chief business economist at S&P Global Markets, believes that while inflation remains high, there are signs once again that inflationary pressures on companies have peaked, and increases in input costs and production prices are slowing across the board. But concerns about the economic outlook meant business confidence remained subdued in August.

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