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The Conference Board Economics Watch® European View

Despite strong consumer confidence, households in the Euro Area are getting more cautious about spending, possibly because of recession fears. Recent moderations in the decline of the PMI and business confidence suggest that the manufacturing downturn may be bottoming out. A trade agreement between U.S. and China, as modest as it may be, will foster more optimism among manufacturers. Profit performance of non-financial corporations in the Euro Area has weakened, especially in Germany and Italy.


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