Categories Finance

ECB’s Lagarde: Consumer confidence is fragile, uncertainty to weigh on investment

  • Last year’s growth pattern is continuing
  • Manufacturing is a drag
  • Uncertainty is holding back investment
  • Services are resilient
  • Survey’s suggest that employment growth is subdued
  • Increased uncertainty to weigh on investment more than expected

Lagarde is highlighting why GDP forecasts were lowered.

  • Most inflation forecasts point to a sustained return to target in the medium term
  • Domestic inflation remains high
  • Recent wage deals point to continued moderation in wages pressures
  • Trade tensions could lower growth
  • Risks to growth are tilted to the downside

This isn’t exactly an optimist press conference but euro traders are looking further out with Germany proposing to massively increase spending.

  • Geopolitical risks create two-sided inflation risk
  • Defense and infrastructure investment could raise inflation

This article was written by Adam Button at www.forexlive.com.

More From Author

Leave a Reply

Your email address will not be published. Required fields are marked *