Eurochambres survey says companies confident growth to continue

Analysis

European Union companies are confident that the region's economic recovery, led by Germany, will continue even amid signs of a slowdown in the US, the Eurochambres trade group said in a study.

While the European Central Bank's interest-rate increases over the past year, and the prospect of further rises in 2007, “may have had a dampening effect” on investment forecasts, the Eurochambres survey “indicates stronger business confidence” than the European Commission's latest economic-growth projections, the group said today in a statement. “The main reason behind the upswing in the European economy is Germany's recovery,” Eurochambres, which represents 2,000 chambers of commerce and industry in Europe, said in releasing the survey. The group polled 78,000 companies across Europe in September and October. “The economic upswing is going to continue, although there are risks of a slower pace,” Eurochambres said, citing a potential slowdown in Germany in early 2007 and a cooling in the world economy.

Business confidence in Germany, Europe's largest economy, unexpectedly rose in November, matching a 15-year high, as export and investment prospects improved. The ECB is poised to raise rates this week for the sixth time in a year, and ECB President Jean-Claude Trichet may prepare the ground for another increase in the first quarter as the euro region's fastest expansion in six years threatens to spur inflation. The Frankfurt-based ECB will lift its benchmark rate by a quarter-point to 3.5% on December 7, according to all of the 41 economists surveyed by Bloomberg News. If the slowdown in the US is sustained, it is “bound to impact negatively on European economies eventually,” Eurochambres said. The trade group urged countries to open up markets and make it easier for companies to hire workers' so as not to derail the recovery. (Bloomberg)

ADVERTISEMENT

Varga augurs return to pre-crisis GDP growth in summer Analysis

Varga augurs return to pre-crisis GDP growth in summer

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Chain Bridge to be closed for traffic for 18 months City

Chain Bridge to be closed for traffic for 18 months

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.