High Confidence in the Economy of European Consumers and Entrepreneurs
Confidence in the eurozone economy has never been higher. Entrepreneurs, in particular, see it positively, reports the European Commission. However, consumers became slightly less positive than a month earlier.
These consumers are slightly less likely to think that their financial situation will improve in the coming months and are also less likely to make large purchases. This was partly due to the emergence of the Delta variant of the coronavirus, say ING economists who further point to the rising prices.
Commodities have been getting more expensive now because the economy is spinning fast after a considerable decline last year. As a result, more and more companies are passing these higher costs on to their customers. Ultimately, this also makes prices more expensive for consumers.
This may have consequences for the economy in the coming months, but there is little going on right now. For example, Sweden announced that the economy grew 0.9 percent in the second quarter compared to the previous period. This has reversed the contraction of 2020.
Unemployment in Germany fell more sharply this month than economists had anticipated. As a result, the German labour market is recovering somewhat. However, its recovery lagged somewhat behind, for example, in industrial production.