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Economics Gazette

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November 14, 2019

Eurozone economic outlook is improving in October 2017

Eurozone economic outlookEurozone economic outlook is improving in October 2017 for the sixth consecutive month to its highest level of over 17 years, according to a study by the European Commission.

The rise in the index from 114.1 points in October to 114.6 points in November shows that economic recovery remains strong despite political instability in Germany and Spain, two of the largest member states. This is the highest value since October 2000 and is well above the long-term average of 100 points.

Both consumers and industry companies are expecting higher prices, a good signal for the European Central Bank (ECB), which is pushing inflation to a target of 2%. A separate indicator of the business climate committee rose from 1.44 to 1.49 points in November, the highest level of 10 years. Still, expectations were for growth to 1.53 points.

Optimism among the industrial sector is partly due to expectations of higher sales prices. The index for these expectations jumped from 8.7 points to 11.1 points as the Christmas shopping season approaches.

The euro area inflation in October was 1.4% yoy. November data are expected on Thursday and forecasts will see acceleration in consumer price growth.

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