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