European Economy: Continued Low Economic Activity
2024-09-24
■ In July, industrial production in the Eurozone decreased by 0.3% month-on-month, indicating sluggish production activity in the major industries of the Eurozone.
■ The Sentix Investor Confidence Index for the Eurozone in September has been declining for three consecutive months, reflecting further stagnation in current economic activity.
In July, industrial production in the Eurozone decreased by 0.3% compared to the previous month, and the June data was revised upwards, marking the first decline in two months. From different categories, there has been a decline in intermediate products, capital goods, and durable consumer goods. From a national perspective, production activities in major countries such as Germany, France, Italy, and the Netherlands have also decreased, indicating that the production activities of major industries in the eurozone are sluggish.
The Sentix Investor Confidence Index for the Eurozone in September was -15.4, a decrease of 1.5 percentage points from the previous month, marking the third consecutive month of decline. Although the expected index has slightly increased, the current index has declined. The expectation of future monetary easing by the European Central Bank (ECB) has supported the expectation index, but current economic activity is showing further stagnation.
At the European Central Bank Council meeting held on the 12th, it was decided to lower the central bank deposit rate by 0.25%. Policy guidance remains unchanged, and appropriate levels and duration of tightening policies will continue to be determined based on data from each meeting. According to employee macroeconomic forecasts, the Harmonised Index of Consumer Price (HICP) inflation target estimates remain consistent with June. Although service prices and wage growth rates remain high, the European Central Bank will cautiously push forward with interest rate cuts.
■ The Sentix Investor Confidence Index for the Eurozone in September has been declining for three consecutive months, reflecting further stagnation in current economic activity.
In July, industrial production in the Eurozone decreased by 0.3% compared to the previous month, and the June data was revised upwards, marking the first decline in two months. From different categories, there has been a decline in intermediate products, capital goods, and durable consumer goods. From a national perspective, production activities in major countries such as Germany, France, Italy, and the Netherlands have also decreased, indicating that the production activities of major industries in the eurozone are sluggish.
The Sentix Investor Confidence Index for the Eurozone in September was -15.4, a decrease of 1.5 percentage points from the previous month, marking the third consecutive month of decline. Although the expected index has slightly increased, the current index has declined. The expectation of future monetary easing by the European Central Bank (ECB) has supported the expectation index, but current economic activity is showing further stagnation.
At the European Central Bank Council meeting held on the 12th, it was decided to lower the central bank deposit rate by 0.25%. Policy guidance remains unchanged, and appropriate levels and duration of tightening policies will continue to be determined based on data from each meeting. According to employee macroeconomic forecasts, the Harmonised Index of Consumer Price (HICP) inflation target estimates remain consistent with June. Although service prices and wage growth rates remain high, the European Central Bank will cautiously push forward with interest rate cuts.