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The Conference Board Economics Watch® European View

Euro Area manufacturers are struggling with both demand and supply conditions.The decline in production is particularly strong in Germany, where the automotive had a strong decline in production in 2018 and 2019. Yet it is not the only industry suffering. Despite that, the country will not necessarily fall into a recession in Q3, thanks to a strong service sector. In the meantime, policy uncertainty declines in Italy with the formation of a new pro-European government, while it remains very high in the UK.

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