EURO ZONE

摘要

Despite forward-looking sentiment indicators (see chart, bottom) like the April PMIs for the manufacturing, service and retail sectors rebounding, the economy was mired in recession in Q1. Retail sales fell by 0.6% (m-o-m) in March, while rising unemployment, weak consumerconfidence and tight credit conditions are reining in private consumption. Despite this, the 2009 forecast has stabilised at -0.7%. Industrial output, meanwhile, plunged by 17.6% (y-o-y) in February, while March production indicators in Germany and Spain (among others) continued to tumble. The ECB consequently slashed interest rates by 25 basis points to 1.0% whilst also announcing several "non-conventional" measures to support liquidity in the financial system.