Euro-area economic confidence improves for first time in a year

Bloomberg

Euro-area economic confidence unexpectedly improved in May, snapping an almost yearlong streak of declines when the region was battling through a host of struggles.
The improvement was dri-ven by industry and the str-ongest increase in production expectations in more than six years. That was despite continued negativity about export orders and the business climate. A separate report added to the upbeat news, with lending to households and companies picking up in April.
The figures will give hope to those predicting a pickup in momentum in the second half of the year. The confidence report from the European Commission showed stronger figures in Germany, France and Italy, the euro area’s three largest economies. Loans to euro-region households clim-bed 3.4 percent from a year earlier, the fastest pace since January 2009. Still, in addition to international trade tensions that are weighing on sentiment and crimping corporate earnings, European businesses are grappling with slower global momentum and localised challenges like the structural change in the German car industry.
At the European Central Bank, the record of policy makers’ last meeting showed a number of officials losing faith in the idea of a return of more solid growth. A fresh batch of ECB growth and inflation forecasts will be unveiled next week, when rate-setters will decide if they warrant any addition stimulus to grease the wheels for the economy.
First-quarter growth in the 19-country region surprised to the upside, thanks to resilient consumer spending, though recent figures suggest the pace won’t be sustained.