An overview of the eurozone economy
In recent months, the eurozone economy has shown signs of stagnation, with recent data showing a slight decline in economic activity for the second consecutive month. According to the October PMI survey, the PMI services index fell to 51.2, missing expectations of 51.5, while the manufacturing PMI recorded a slight recovery, reaching 45.9. These data suggest that the economy is in a stalemate, with a marginal contraction that worries analysts and financial institutions
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The concerns of the European Central Bank
The European Central Bank (ECB) is closely monitoring the situation. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, commented that the recent data represents an unpleasant surprise for the ECB. Inflation in the services sector continues to remain high, with costs and sales prices rising faster than the previous month. This increase is probably due to persistent wage pressure, which affects service companies in particular. As a result, it is expected that the ECB could opt for a cut in interest rates of only 25 basis points in December, rather than the 50 previously anticipated.
Growth opportunities in the current environment
Despite the challenges, there are also signs of opportunity. For example, the Ftse Mib showed positive performance, with Saipem recording higher than expected quarterly results and improving guidance for 2024. This is a clear indication that, despite general difficulties, some companies are successfully managing to navigate the current environment. In addition, the agreement signed by Intesa Sanpaolo with trade union delegations for generational change without social impacts represents an important step towards stability and sustainable growth in the long term
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