Eurozone bank lending, sentiment fall again, pressuring ECB

Fortune

Another raft of overwhelmingly negative economic data hit the Eurozone Thursday, with bank lending to the private sector falling again in July, along with a broad survey of business and consumer confidence.

On a busy day for bean-counters, Italy, the bloc’s third-largest economy, said retail sales fell by 2.6% in the year to June, more than expected, while Spain said its inflation rate fell to -0.5% in July, adding to the European Central Bank’s headaches about the Eurozone possibly falling into a deflationary spiral.

Even Germany, the region’s strongest economy, couldn’t break the pattern, as the number of jobless rose by 2,000 in August, in contrast to expectations for a 5,000 decline.

The largely negative tone of the releases drove the euro down to within touching distance of $1.3170, its low for the year against the dollar.

On balance, the figures add support for fresh action from the…

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