Economic Snapshot for the Euro Area
May 5, 2022
Russia-Ukraine War Economic Impact - Analysis & Special Reports
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Euro area economic activity to moderate this year
The economy expanded at a weaker pace in Q1 2022. Germany, the Euro area’s largest economy, came close to falling into a recession. Soaring inflation and souring consumer sentiment seemingly hit household spending in the currency area. That said, manufacturing activity likely held up better, with average PMI readings in Q1 remaining roughly at Q4 levels. Moving to Q2, looser Covid-19 restrictions boosted the PMI in April. However, still-downbeat consumer sentiment in April, coupled with tightening financial conditions and high energy and commodity prices, bodes poorly for activity. Meanwhile, the ongoing conflict in Ukraine and the adoption of further sanctions against Russia by the EU spell trouble for momentum ahead. In politics, the presidential election victory in April of the pro-EU politician Emmanuel Macron in France will likely boost the political stability of EU institutions.
Inflation to remain high in 2022
Harmonized inflation rose to 7.5% in April from March’s 7.4%, marking the highest print since records began in 1997. Loose fiscal and monetary policies coupled with high energy prices and supply bottlenecks will stoke inflation this year, with upside risks stemming from the Russia-Ukraine conflict and China’s Covid-19 policy.
5 years of Euro Area economic forecasts for more than 30 economic indicators.
Euro Area Economic News
May 12, 2022
The S&P Global Composite Purchasing Managers’ Index (PMI) jumped to 55.7 in April from 53.1 in March, reflecting a stronger services sector amid reduced Covid-19 restrictions.
May 12, 2022
Harmonized consumer prices rose 0.69% in April over the previous month, below the 2.47% rise recorded in March.
May 11, 2022
Industrial production expanded 0.1% year-on-year in seasonally- and calendar-adjusted terms in March (February: +2.8%).
May 11, 2022
Industrial production decreased 1.1% month-on-month in seasonally-adjusted terms in March (February: +0.2% mom).
May 10, 2022
Industrial production rose 0.1% year-on-year in seasonally- and calendar-adjusted terms in March (February: +2.8%).
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