Expert: Energy Crisis Yet to Impact Eurozone Business Activity

According to Jin10, Jack Allen-Reynolds from Capital Economics stated in a report that the energy crisis has not yet significantly affected business activity in the Eurozone. An EU Commission survey indicates that confidence in the industrial, service, and construction sectors remains stable, while retail confidence has slightly declined, aligning with a quarterly GDP growth of approximately 0.4%, which is better than the level suggested by March's PMI. Despite a significant drop in consumer confidence, it is still too early to conclude that high energy prices have spread to other economic sectors. He noted, 'Policymakers might find some relief in the lack of major fluctuations in the service sector,' adding that this weakens the case for interest rate hikes in the Eurozone.