20 Nov 2015
Euro area’s gradual recovery supported by the consumption - Nomura
FXStreet (Delhi) – Research Team at Nomura, suggests that Euro area domestic demand has been the main factor behind the recovery in GDP growth in the region since H2 2014.
Key Quotes
“Consumption has been boosted by real disposable income effects from low energy prices, and has also been supported by the underlying improvement in gross disposable income, reflecting factors such as improved consumer confidence, a (slowly) improving labour market and a relatively stable savings ratio.”
“With consumer confidence largely holding up, we expect the domestic sector to continue to support growth in the region, even as real disposable income effects fade. However, we continue to expect the strength of the recovery will be constrained by a relatively subdued wage growth outlook, and the absence of stronger consumption and investment continue to produce a more muted euro area post-crisis GDP recovery.”
Key Quotes
“Consumption has been boosted by real disposable income effects from low energy prices, and has also been supported by the underlying improvement in gross disposable income, reflecting factors such as improved consumer confidence, a (slowly) improving labour market and a relatively stable savings ratio.”
“With consumer confidence largely holding up, we expect the domestic sector to continue to support growth in the region, even as real disposable income effects fade. However, we continue to expect the strength of the recovery will be constrained by a relatively subdued wage growth outlook, and the absence of stronger consumption and investment continue to produce a more muted euro area post-crisis GDP recovery.”