Commenting on the lowest Eurozone manufacturing confidence since 2012

Commenting on weaker than expected Eurozone manufacturing business confidence, Rupert Thompson, Head of Research at Kingswood, said: “Eurozone manufacturing business confidence was unexpectedly weak in July, falling to the lowest level since 2012. Confidence in the service sector continues to hold up rather better. But even so these numbers suggest hopes, prompted by the unexpectedly strong bounce in activity in Q1 that Eurozone growth has bottomed out, may have been premature. Indeed, the data can only increase the pressure on the ECB, which meets tomorrow, to ease policy sooner rather than later. Still, the ECB may well decide to delay any easing until September – not least because Draghi may need time to get the ECB to agree on what action to take. Most likely tomorrow, Draghi will just confirm that easing is very much on the cards – just not till September.”