BusinessEurope Reports Rising Sentiment Amid Inflationary Pressures
BusinessEurope reports improved sentiment across European industry and services sectors despite concerns over rising inflation and national fiscal vulnerabilities.
Business sentiment among European companies has improved across the industry and services sectors since June, according to a survey released Thursday by BusinessEurope. The proportion of industry members reporting negative sentiment fell from 62% to 33%, while negative sentiment in the service sector dropped from 50% to 30%.
Despite this optimism and rising investment expectations, nearly half of the association's members expressed being very concerned by inflation, which reached a three-year high of 4.0% in October. This pressure is driven by surging food and energy costs, exacerbated by the US war with Iran.
Over half of the surveyed businesses view their own national fiscal policies as too expansionary. BusinessEurope warned that rising debt and delayed consolidation in several EU member states are creating vulnerabilities as financial markets increase borrowing costs for countries with weak government finances, including France.
