Category: eurozone

Eurozone Business Growth Lost More Momentum in January as Omicron Hit Demand

LONDON—Eurozone economic growth lost more momentum in January as the bloc’s dominant services industry suffered from subdued demand amid tighter restrictions to contain the Omicron coronavirus variant, a survey showed. Some governments in the currency union have been encouraging citizens to stay at home to try and stop the more virulent variant from spreading while…


Inflation in Eurozone Spikes to Record High, Driven by Surging Energy Costs

Inflation in the eurozone notched a record high in the year through January, the European Union’s statistical agency reported, delivering an upside surprise to forecasters who predicted a significant easing of price pressures. Prices rose by 5.1 percent in the 12 months through January in the 16 European nations that share the euro currency, according…


Eurozone Jobless Rate Falls to Record Low in December 2021

BRUSSELS—Eurozone unemployment fell to its lowest level on record in December, data showed on Tuesday, testament to the strength of the economic recovery and the effectiveness of part-time work schemes used to preserve jobs during pandemic lockdowns. The European Union’s statistics office Eurostat said the unemployment rate in the 19 countries sharing the euro fell…


Eurozone Factory Growth Accelerated in January as Bottlenecks Eased: PMI

LONDON—Eurozone manufacturing activity accelerated last month as supply chain bottlenecks eased, although the improvement was not evenly spread across member countries and factories still faced high inflationary pressures, a survey showed on Tuesday. IHS Markit’s final manufacturing Purchasing Managers’ Index (PMI) rose to a five-month high of 58.7 in January from December’s 58.0, below an…


Inflation Outlook Highly Uncertain, ECB’s Holzmann Tells Paper

VIENNA—There is “a great deal of uncertainty” over how long inflation will remain well above the European Central Bank’s target of around 2 percent, ECB Governing Council member Robert Holzmann said in an interview with newspaper Die Presse published on Sunday. The ECB has long held the view that inflation will decline this year from…


ECB’s Rehn Expects Eurozone Inflation of Around 2 Percent in Next Two Years: Handelsblatt

BERLIN—The drivers of inflation in the eurozone will subside over the course of the year and inflation will hover around the European Central Bank’s price stability target of 2 percent in the next two years, Finnish central bank chief Olli Rehn was quoted as saying on Sunday. In a pre-released interview with German business daily…


Eurozone Recovery Stumbled in January as Omicron Hit Services: PMI

LONDON—The eurozone economic recovery weakened this month, despite an upturn in Germany where factories benefited from an easing in supply chain bottlenecks, as renewed restrictions put a dent in the bloc’s dominant services industry, a survey showed. With the Omicron coronavirus variant sweeping across Europe, governments have been encouraging citizens to stay home and avoid…


Eurozone Inflation Hits Record High of 4.9 Percent, Broadens Into Non-Energy Categories

Consumer price inflation across the 19 countries that use the euro currency accelerated in the year through November at its fastest pace since records began in 1997, according to official data, which also showed inflation broadening out into non-energy categories. The European Union’s statistics agency Eurostat said in a Nov. 30 release (pdf) that the…


Soaring Energy Costs Push Eurozone Inflation to Highest Level in 13 Years

Inflation in the 19 European countries that share the euro hit a 13-year high, challenging the European Central Bank’s (ECB) view that price pressures are largely benign and will soon fade. Consumer price inflation in the eurozone accelerated to 3.4 percent over the year in September, up from 3 percent a month earlier and 2.2…


The Eurozone Is Going Down the Japan Route

Commentary The European Central Bank (ECB) announced a tapering of the repurchase program on Sept. 9. One would imagine that this is a sensible idea given the recent rise in inflation in the eurozone to the highest level in a decade and the allegedly strong recovery of the economy. However, there’s a big problem. The…