Charting the Global Economy: Prospects Dim for European Economy
A Euro sign at the European Central Bank.
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Business activity in the euro area unexpectedly shrank this month, fueling concerns about the prospects for Europe’s economy and suggesting the European Central Bank will need to be more aggressive with interest-rate cuts.
The euro fell to its lowest level since 2022 against the dollar after the purchasing managers gauge of service providers and manufacturers weakened. Political crises in Germany and France, as well as the threat of tariffs from a Donald Trump presidency in the US, also weighed on the currency.