Confidence in the Eurozone economy fell to a New 15-month low, as investors begin to worry about a sharp slowdown and the recent rise in trade tensions with the United States.
Economists had expected the index of investor confidence in the Eurozone, to make a modest rebound in may, but he fell for the fourth straight month to 19.2.
The Eurozone recovery hit top gear in 2017, but growth in the first quarter of the year has lost its power, is reduced from 0.7 PC to 0.4. Amid fears that growth in the Eurozone has reached its peak, the sub-index measuring investors ‘ expectations for the region has slipped further into negative territory, dropping to its lowest level since 2014.
A stronger Euro makes Eurozone exports less competitive, and fears that tit-for-tat exchange of tariffs between the United States and its major trading partners may lead to revival of policies of protectionism knocked sentiment, said change.
Eurozone: weak start slowing mirrors UK until 2018
Last week the EU was awarded a 30-day extension of steel and aluminium rates the White house said earlier this year.
However, U.S. authorities warn that this is the last opportunity to negotiate, to minimize import taxes. The European Commission has stated that a temporary exemption “extends the market uncertainty that is already affecting business decisions.”
Hopes that the trade spat could be reassured the talks in Beijing last week was undermined by the sales team of Donald trump to ask China to reduce its trade deficit with the US $200 billion (£147bn) by 2020.
Concerns about the worsening economic situation in the Eurozone was compounded yesterday retail region sales growth Contracting for the first time during the year in the observed IHS markit PMI.
Chart: instant JP Morgan ‘quarter’ tracker Eurozone growth fell sharply
IHS economist at markit Alex Gill warned that the decline in sales in April was a sign “restricted consumer demand and increased uncertainty” in the region.
Retail sales in the three largest Eurozone economies – Germany, France and Italy – suffered a sharp decline in 17 months.
The world economy hit the brakes in the first quarter of 2018 with us growth cooling slightly in annual terms amounted to 2.3 PC growth in the UK slowed almost to a stop 0.1 PC.
Despite fears of a global slowdown, economists expect growth in the second quarter, rising by 0.6 PC in the Eurozone and 0.4 PC in the United Kingdom.