Eurozone Remains on Solid Growth Path

Euro zone businesses started the second half of 2017 with solid growth, though declining inflation pressures could put paid to expectations of a stimulus clawback by the ECB later this year, a survey found on Monday.

Years of ultra-easy policy may be bolstering growth, but inflation is still nowhere near the European Central Bank’s 2 percent target ceiling and shallower price rises this month will provide disappointing reading for policymakers.

IHS Markit’s euro zone Flash Composite Purchasing Managers’ Index for July, seen as a good guide to economic growth, fell to 55.8 from June’s 56.3, still comfortably above the 50 level that separates growth from contraction.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.