EA Activity Catches Global Cold
309 Views, 24 Jun 2022 02:04
- The Euro area’s relative resilience lasted only a month as its services PMI crashed in June, while the US extended its trend decline.
- Consumer confidence remains far gloomier than businesses amid squeezed real incomes. Unemployment may be turning higher, but the vacancy backlog should prevent a spike.
- Monetary policymakers are fixated on the risk of high coincident inflation and will keep hiking into weaker activity. They overdid stimulus and now risk overdoing tightening.