EC survey sees stronger Euro zone growth in Q4

The latest survey held by Euro zone EC confirmed the market that EZ GDP growth will speed up in Q4, but it may affect consumer recovery. The economic sentiment indicator came in highest since April 2011 at 106.8. The index now appears consistent with a rise in annual GDP growth from Q3's 1.6% to 2% or so, suggesting that quarterly growth in Q4 should be stronger than Q3's 0.3%.  

By analysing the individual region, ESI rose in Spain and Italy but dipped in France, While German ESI was flat. One of the reasons for negative ESI in France was the terrorist's attack. The euro-zone sectoral breakdown shows that the improvement in the ESI reflected increases in service sector, industrial and consumer confidence, but the consumer confidence index remains steady with a slowdown in spending growth. The impact of it can be shown from the weak retail sales data of the November at 0.3%. Apart from this due to the healthy labour market, spending will continue to receive back up. At the end of 2015, Euro zone showed healthy recovery but market expects some slowdown in growth in 2016.