Economic Confidence Survey Overview

Investing.com reports that the Economic Confidence (EC) survey indicates a stagnant euro-zone GDP in Q4, accompanied by continued inflationary pressures, according to Capital Economics’ results.

Key Findings

• GDP Stagnation: The survey aligns with prior indicators, such as the Purchasing Managers Index (PMI), which also showed no significant changes in Q4.
• Economic Sentiment Indicator (ESI): The ESI fell from a revised 95.6 in November to 93.7 in December, a steeper drop than forecasted, signaling GDP stagnation.
• Labor Market Loosening: The employment expectations index decreased from 98.9 to 97.3, indicating a weakening labor market, with employment growth falling from 0.2% in Q3 to just above zero.
• Persistent Inflationary Pressures: Selling price expectations have slightly increased in both industrial and construction sectors, while the services selling price expectations index surged to a 10-month high, surpassing pre-Covid levels.

These findings may heighten concerns among ECB policymakers regarding domestic price pressures despite the overall economic weakness.

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