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Confidence in the eurozone’s economic outlook fell back as sluggish growth weighed on sentiment, with little hope of a major rebound ahead, surveys of households and business showed.
The European Commission said Thursday that its economic sentiment indicator for the currency area edged down to 95.2 this month from 95.7 in July, thwarting economists’ expectations of a slight uptick in sentiment.
Consumer confidence fell back, as did sentiment in industry and construction.
“Managers’ uncertainty about their future business situation declined notably in the services sector, and to a lesser extent also in industry and the retail trade,” the commission said.
Worsening sentiment suggests a frosty reception to the trade deal reached with the U.S. at the end of last month, which will see a baseline 15% tariff applied to E.U. exports. That will hit the bloc’s exporters, notably in powerhouse Germany, where the economy shrunk 0.3% over the second quarter amid tariff turmoil and underlying weaknesses.
In France, meanwhile, the minority government is likely to collapse in the coming weeks after premier Francois Bayrou called a confidence vote he is likely to lose, further exacerbating the country’s deep-seated fiscal problems. A recourse to the International Monetary Fund is “a risk that stands in front of us,” finance minister Eric Lombard warned.
© 2015 Mutual Fund Observer. All rights reserved.
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Comments
When you compare Europe to the U.S., the populations are similar, and Europe arguably has stronger education. So why does Europe lag so far behind in high tech, while the U.S. and Asia surge ahead?
Eventually, semi-socialism runs out of money.
Have you noticed the list of companies who have simply filed some papers with the IRS, declaring their HQ to be in IRELAND? There was more and more attention paid to Ireland as a possible new domicile for some of the financial sector during Brexit. That's been finalized now. And the land-border between Ireland and Northern Ireland is pretty much invisible.
We need each other, it's true, just like Quebec needs the rest of Canada, and the rest of Canada cannot afford to ever let Quebec secede. Rather than to create huge deficits only so that the richest won't have to pay taxes, the US should learn some lessons about the value of PEOPLE, as opposed to green benjamins.