The eurozone economy is so far coping well with the energy crisis, next week’s news could tell us.
Purchasing managers’ surveys should report that both manufacturing and service sector activity in the region is still growing. Also, Germany’s Ifo should report stable business conditions and expectations whilst the National Bank of Belgium should say that business confidence is stable and above its long-term average.
One reason for such resilience is that Covid-related staff absences are declining and supply constraints and shortages of materials are easing slightly, both of which offset high energy costs. It’s also because – as Friday’s data from the European Central Bank (ECB) should show – households are borrowing a little more to see themselves through the squeeze on real incomes.