Euro-area business growth at 4-year low

Bloomberg

Euro-area companies are bracing for subdued economic momentum in 2019 after activity slipped to a four-year low at the end of last year.
Growth in manufacturing and services slowed more than initially reported in December 2018 — weighed down by public protests in France, Germany’s continued struggles in the car industry, and renewed weakness in Italy. Composite gauges for output expectations and new orders were the worst since late 2014.
“Companies are not anticipating any imminent revival in demand,” said Chris Willi-amson, chief business economist at IHS Markit. “Worries reflect multiple headwinds from trade wars, Brexit, heightened political uncertainty, financial-market vola-tility and slower global economic growth.”
The European Central Bank acknowledged all those risks last month when it downgraded its 2019 forecast for the expansion in the 19-nation euro area. Still, policy makers decided to end asset purchases, pushing ahead with plans for a gradual reduction in monetary stimulus.