(CercleFinance.com) – Reacting to the slight decline in the European Commission’s Economic Sentiment Indicator (ESI) (-0.3 points to 99.3 in the euro zone in March), Capital Economics believes that it ‘leaves still predict GDP growth in the first quarter’.
‘At the same time, corporate selling price expectations suggest that core inflation is approaching a peak, but they remain very high. Thus, the base rate should gradually decline,’ adds the London analysis office.
For its part, Deutsche Bank Research points out that this slight weakening of the ESI index over the month that is ending comes in contradiction to the rise in the composite PMI index, to a 10-month high of 54.1. , released last week.
“Eurozone activity could now be close to the peak of the post-energy shock rebound,” he warns, pointing to further headwinds, in particular banking tightening, which are likely to weigh on the economy thereafter.
Copyright (c) 2023 CercleFinance.com. All rights reserved.