Euro zone economic mood brightens after Brexit
Confidence index edges up, led by industry
Euro area economic confidence unexpectedly improved in July in a sign that the immediate impact on growth of Britain’s surprise vote to leave the European Union may be muted.
An index of business and consumer confidence rose to 104.6 in July from 104.4 the previous month, the European Commission said this morning. Economists in a Bloomberg survey predicted a decline to 103.5.
Whilethe International Monetary Fund has warned that downside risks to global growth have increased significantly following the Brexit vote, Central Bank policy makers from around the world have not succumbed to that kind of pessimism.European Central Bank President Mario Draghi has said that early estimates of the British referendum’s economic impact needed to be taken with a “grain of caution.” New growth and inflation forecasts are due in September.
