Tuesday, June 30, 2009

Euro-Zone's Confidence Rises Regardless Problems

Economy and consumer confidence in the euro zone improved for the third consequent month in June. However, the European Commission still fears problems in future. According to a survey by the European Commission, the overall economic-sentiment indicator for the euro zone inclined sharply to a high of 73.3, from 70.2 in May. In the U.K., the Commission's economic-sentiment index grew sharply for 30 percent straight month to 68.8 in June from May's 66.1.

The gains gave ground to think that the European downturn could begin bottoming out. Economic analysts say, the European Central Bank will not change its medium-term view that it should take additional steps to support growth in the euro zone. The ECB's governing council meets on Thursday and is expected to keep unchanged its key interest rate at the same level of 1.0% and also to announce no changes in policy measures to inflate money supply. Many economists warn that improving sentiment should result better performance in output of goods and services.

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