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The Conference Board Economics Watch® European View

The Euro Area economy moderates due to weak external demand, and domestic consumption may not compensate for it. The pessimism that characterizes the mood of Euro Area business leaders is most visible in the manufacturing sector. A key reason behind the change in economic sentiment is the decline in the growth rate of global trade. Despite declining unemployment, consumption growth was modest in Q2 and Q3 of 2018, while simultaneously households increased their savings rate.

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