Businesses across the euro zone are ending 2017 on a near seven-year
high, with demand and price pressures picking up and forward-looking
indicators pointing to a busy start to 2018.
The results of a key private sector survey on Thursday were better than economists polled by Reuters expected, with factories marking their best month in the survey’s two-decade history while services activity also accelerated.
December’s upbeat numbers come the month before the European Central Bank is set to cut in half its monthly asset purchases to 30 billion euros (£26.4 billion). The ECB meets later today and is likely to bump up some economic forecasts.
Despite a decade of ultra-loose policy, the ECB has failed to get inflation up to its target of just under 2 percent. So evidence in the latest survey of continuing price pressures, although a bit weaker than in November, will be welcomed.
The euro zone economy as a whole likely expanded 0.8 percent this quarter, IHS Markit said. If correct, that would be the strongest official quarterly growth rate since early 2015.
The results of a key private sector survey on Thursday were better than economists polled by Reuters expected, with factories marking their best month in the survey’s two-decade history while services activity also accelerated.
December’s upbeat numbers come the month before the European Central Bank is set to cut in half its monthly asset purchases to 30 billion euros (£26.4 billion). The ECB meets later today and is likely to bump up some economic forecasts.
Despite a decade of ultra-loose policy, the ECB has failed to get inflation up to its target of just under 2 percent. So evidence in the latest survey of continuing price pressures, although a bit weaker than in November, will be welcomed.
The euro zone economy as a whole likely expanded 0.8 percent this quarter, IHS Markit said. If correct, that would be the strongest official quarterly growth rate since early 2015.
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