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    Home » Euro-Area Economic Confidence Falls to 112.7 in January
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    Euro-Area Economic Confidence Falls to 112.7 in January

    January 28, 20221 Min Read
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    The Eurozone economy began 2022 in a weak position, with fresh pandemic restrictions hurting confidence and concerns that Germany is on the brink of a recession.

    • A sentiment gauge by the European Commission dropped to 112.7 in January, the lowest level in nine months, attributable to declines in most sectors and among consumers. Employment expectations fell for a second month.
    • The report comes after Germany posted results showing that Q4 output contracted 0.7% more than twice nearly as projected by economists. But France and Spain posted faster-than-anticipated expansion.
    • Europe is struggling in recovery from the pandemic, with supply chain constraints hampering manufacturing, Covid-19 curbs affecting services, and personal shortages hampering all sectors of the economy.

    Service providers and retailers are expected to raise prices in the coming months, according to the Commission survey. Consumers become more pessimistic about their future financial position.

    DXY EUR up +0.15%, USD down -0.04%

    Source: European Commission

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