Advertise On EU-Digest

Annual Advertising Rates

10/5/13

EU economic recovery picking up steam, surveys suggest

While the U.S. economic outlook has become murkier because of the partial shutdown of the government, the picture in Europe -- so long the laggard of the global economy -- has brightened.

Another round of economic data Thursday provided evidence that Europe's recovery from recession is becoming broad-based and self-sustaining.

Particularly encouraging was the news that retail sales across the eurozone rose a forecast-busting 0.7 per cent in August from the previous month, according to Eurostat, the EU's statistics office.

Retail sales are an important barometer of economic confidence as they show consumers are more willing to spend rather than save despite many headwinds, such as high unemployment and government-imposed austerity measures. They are also a major component of growth.

Earlier Thursday, a closely-watched survey found economic output across the eurozone rose in September at its fastest pace since the summer of 2011. Financial information company Markit said its composite purchasing managers' index -- a broad gauge of business activity across the manufacturing and services sectors -- rose to a 27-month high of 52.2 points in September. The increase from 51.5 in August takes the index further above the 50-point threshold that indicates expansion.

Read more: EU economic recovery picking up steam, surveys suggest | CTV News

No comments: