Eurozone Gets 2018 Off to a Strong Start

January 24, 2018 Share Print 0

The euro-area economy strengthened further at the start of 2018, bringing with it signs of a long-awaited pickup in inflation.The improvement lifted IHS Markit’s Purchasing Managers’ Index to 58.6 from 58.1 in December, higher than economists had forecast. The gauge is now at a level suggesting quarterly economic growth of close to 1 percent, according to the report.

Rising output prices will reinforce the position of the more hawkish members of the European Central Bank’s Governing Council. They’ve already been out in force this year, arguing that the improved economic backdrop has put inflation on a path toward 2 percent and justifies an unwinding of unprecedented stimulus.

Source: Euro-Area Economy Opens 2018 With Best Growth in Almost 12 Years – Bloomberg

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Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.