Businesses across the eurozone continue to show confidence in their growth prospects, even as profit margins come under strain, partly due to ongoing trade disputes, according to a recent survey published by the European Central Bank (ECB) on Monday.
The ECB’s latest quarterly Survey on the Access to Finance of Enterprises indicated that a net 8% of companies reported higher sales over the past three months, while a net 23% remain optimistic about their performance in the upcoming quarter.
Although economic expansion has been modest in recent years, firms have kept employment levels steady, anticipating an eventual economic recovery.
The survey also highlighted a widespread decline in profitability, with small and medium-sized enterprises feeling the pressure more acutely.
Most respondents acknowledged being impacted to some degree by trade tensions, especially exporters to the U.S. and businesses in the manufacturing sector.
Meanwhile, long-term inflation expectations held steady, but firms lowered their forecast for price increases over the next year from 2.9% to 2.5%, the ECB noted.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply