Simon Junker analyst at Commerzbank said euro area should show positive growth rates in the second half of the year, which would possibly be weaker than suggested by the increase in economic sentiment.
Economic confidence rose to 76 in July from 73.2 logged in the prior month. However, the level is still far below the long-term average. Economic sentiment is expected to rise in the months ahead and further signal positive growth rates in the region.
Although with the chance of marked sequential growth rates in the short term having increased lately, economic growth is likely to remain muted well into next year. Further, the analyst said the European Central Bank would possibly hold its key interest rate at its current low level for a prolonged period.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.