Cheer in the eurozone as economic morale picked up
Sentiment towards the bloc’s economy rose 1.4 points to 85.7 beating forecasts and ending an eight-month run of falls, the European Commission’s monthly business and consumer survey showed yesterday, with Germany and France gaining strongly.
The Commission’s survey of industry found expectations of a 1 per cent fall in real investment in 2013 compared to this year, however, casting doubt on European policymakers’ predictions that growth will return next year.
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Hide Ad“The economic outlook for the eurozone remains pretty dreadful,” said Jonathan Loynes, chief European economist at Capital Economics in London. The eurozone fell into a recession in July-September, its second since 2009, as French resilience failed to make up for a slump across Europe and the three-year-old debt crisis dragged on Germany, Europe’s economic engine. The Commission sees 0.1 per cent growth in the eurozone economy next year.