EUROZONE ECONOMIC CONFIDENCE SLOWLY IMPROVES IN JUNE

Economic confidence is slowly returning to the euro area where companies from manufacturers to retailers are picking up the pieces after devastating coronavirus lockdowns.

Sentiment in a European Commission survey rose in June, though less than economists had forecasts, and it remains well below the levels seen at the start of the year. The report -- like similar ones published recently -- indicates that full recovery is still a long way off.

The 19-nation euro region is set to shrink more than 8% this year, and European Central Bank President Christine Lagarde has warned that the pandemic will change parts of the economy permanently.

So far, confidence has clawed back about 30% of the combined losses of March and April, when far-reaching restrictions brought public life to a near standstill. While those limitations are now gradually being lifted, the continued spread of the disease in parts of Europe, as well as in the Americas, serves as a cautious reminder how quickly the situation can deteriorate again.
 
 
 
 
Source: Bloomberg