Eurozone: Large companies expect an uneven recovery (ECB)

FRANKFURT, April 12 (Reuters) – Activity in the euro zone is expected to recover moderately and unevenly, supported by an increase in spending but slowed by a lack of investment and demand for labor, major companies said. companies in the bloc in a survey published Friday by the European Central Bank (ECB).

The economy has stagnated for six quarters in the euro zone and economists polled by the ECB in another survey expect only 0.5% growth this year, suggesting that the recovery may not fully materialize until next year.

“The companies surveyed agree on a basic scenario of a gradual and modest recovery this year,” describes the ECB, which surveyed 57 companies. “The destocking cycle has ended and there are indications of improving consumer confidence.”

Businesses also expect a slight rebound in inflation linked to an increase in the price of certain intermediate goods and services, adds the ECB.

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The dynamics of final prices should nevertheless continue to slow down, underlines the institution.

Consumer goods industry groups reported “reasonable” growth and intermediate goods companies reported that demand was stabilizing or even starting to rise again.

Demand for consumer electronics is starting to recover, adds the ECB.

Conversely, distributors remain negative on the sector’s outlook and the agri-food industry has not yet seen a rebound in activity.

Investment remains limited, with capital goods companies reporting that demand and production continue to decline.

“Companies describe poor employment prospects and limited labor needs, with emphasis on cost containment,” concludes the ECB. (Report by Balazs Koranyi, French version Corentin Chappron)


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