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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