EURO ZONE

摘要

The ECB refrained from policy moves at its August 7 meeting after having adopted easing measures in recent months. The outlook for now remains mixed and clouded by geopolitical uncertainties, making it difficult for the central bank to make a clear judgment call. Q2 GDP (released on August 14) reflected the noticeable slowdown evidenced in Germany, France and Italy. Germany is a notable concern, given that it has been the main motor behind the Euro area's fledgling recovery. Inflation continues to drop, with the flash estimate easing to only 0.4% (y-o-y) in July from 0.5% in June. On the upside, July's manufacturing PMI was stable while the services index climbed to a three-month high, which points some modest growth momentum going into Q3.