Eurozone Consumer Pessimism Ebbs, Wage Growth Damp Hopes Of ECB Easing Beyond June Rate Cut

RTTNews | il y a 415
Eurozone Consumer Pessimism Ebbs, Wage Growth Damp Hopes Of ECB Easing Beyond June Rate Cut

(RTTNews) - Consumer confidence in the euro area strengthened in May to its highest level since early 2022, while wage growth figures lent support to the view that the European Central Bank is set to stop policy easing with the expected interest rate cut in June.

The flash consumer confidence index rose for the fourth month in a row, climbing to -14.3 from -14.7 in April, preliminary results of the monthly survey by the European Commission showed Thursday. Economists had forecast a score of -14.0 for the month.

The corresponding index for the EU climbed to -13.2 from -13.7 in the previous month. Both index readings were the strongest since February 2022. Consumer confidence still remains below the long-term average, the commission said.

Data for the latest survey was collected from May 1 to May 22. Final results for the consumer confidence index are set to be released along with the monthly economic sentiment survey data on May 30.

Earlier on Thursday, an indicator from the European Central Bank showed that negotiated wages rose 4.7 percent year-on-year in the first quarter, which was faster than the 4.5 percent increase in the previous three months.

ING economist Bert Colijn said the latest increase was unexpected as wage growth is set to moderate, but a catch-up effect in Germany allowed for another increase at the start of the year. "This helps purchasing power to recover more quickly than expected, which should boost household consumption and in turn bolster the cautious economic recovery the eurozone has embarked on," the economist said.

Colijn also pointed out that concerns over how fast wage growth can ultimately come down are likely to add heat to the debate as ECB policymakers gather for the next policy session in two weeks' time. "We don't think that this will deter the ECB from cutting in June - but it likely cements a hold in July," Colijn added.

Commerzbank economist Marco Wagner also thinks the latest data will not prevent the June rate cut, but would cloud the outlook for any easing beyond.

"The latest figures will not prevent the ECB from cutting interest rates for the first time in June, especially as the Governing Council is dominated by doves," Wagner said. "But if wages continue to rise strongly in the coming months and the upside risks for inflation materialize, the current market perceptions, which foresee further interest rate cuts, especially for 2025, are likely to be too optimistic."

read more
German Exports Decline As Tariff Treats Damp Demand From US

German Exports Decline As Tariff Treats Damp Demand From US

Germany's exports declined for the second straight month in May due to a sharp fall in demand from the US amid tariff threats, data from Destatis revealed on Tuesday. Exports decreased by more-than-expected 1.4 percent month-on-month in May, following April's 1.6 percent fall. Economists had forecast a 0.2 percent drop. Imports slid 3.8 percent from last month.
RTTNews | il y a 4
Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

Eurozone Retail Sales Drop For First Time In 5 Months; Services Output Fall

Euro area retail sales decreased for the first time in five months and services production declined in May, suggesting a slowdown in the second quarter. Retail sales logged a monthly fall of 0.7 percent in May, reversing April's 0.3 percent increase, Eurostat reported Monday. Sales were expected to drop 0.8 percent. Another data from Eurostat showed that services production decreased 0.3 percen
RTTNews | il y a 5
Eurozone Investor Confidence Strongest In More Than 3 Years

Eurozone Investor Confidence Strongest In More Than 3 Years

Eurozone investor confidence rose to the highest level in more than three years in July suggesting that fears of recession triggered by the US tariff shocks are completely off the table, survey data from the behavioral research institute Sentix showed on Monday. The investor confidence index advanced to 4.5 in July from 0.2 in June. The reading was the highest since February 2022 and also stayed
RTTNews | il y a 5
German Industrial Production Rebounds In May

German Industrial Production Rebounds In May

Germany's industrial production rebounded in May driven by robust demand for automobile and pharmaceutical products, official data revealed on Monday. Data released by Destatis showed that industrial production grew 1.2 percent in May from a month ago, confounding expectations for a decline of 0.6 percent. Output in April was revised down to show a 1.6 percent fall compared to the 1.4 percent d
RTTNews | il y a 5
German Factory Orders Log Bigger-Than-Expected Fall

German Factory Orders Log Bigger-Than-Expected Fall

Germany's factory orders declined more than expected in May on falling demand from both the domestic market and other euro area economies, official data revealed on Friday. Factory orders decreased 1.4 percent from a month ago, Destatis reported. Orders were expected to drop 0.2 percent after an upwardly revised 1.6 percent rise in April. Orders declined for the first time in four months.
RTTNews | il y a 8
Eurozone Private Sector Expands More Than Estimated

Eurozone Private Sector Expands More Than Estimated

The euro area private sector expanded more than previously estimated in June as both manufacturing and services sectors registered higher output, final survey results from S&P Global showed on Thursday. The HCOB final composite output index advanced to 50.6 in June from 50.2 in May. The reading was well above the flash estimate of 50.2.
RTTNews | il y a 9
Eurozone Inflation Hits ECB Target

Eurozone Inflation Hits ECB Target

Euro area inflation rose slightly to hit the European Central Bank's 2 percent target in June on slower fall in energy prices and the rise in services inflation, flash estimate from Eurostat showed on Tuesday. Annual inflation climbed to 2.0 percent in June from 1.9 percent in May. The rate reached the inflation target and also matched economists' expectations.
RTTNews | il y a 11