Euro area surveys poised to soften again

One adverse reaction to the Greek impasse has been softening forward-looking surveys of euro area activity. This week saw much lower-than-expected prints from the German ZEW survey, which fell for the third straight month, while euro area PMIs have also declined of late. 

These patterns are expected to continue in the coming week with the June 'flash' PMIs for the euro area (Tue) and the June German IFO (Wed). 

Nonetheless these indices, along with euro area (Mon) and German (Thu) consumer confidence measures, are expected to remain at levels consistent with a continuation of growth in Q2 euro area GDP at a similar pace to Q1, notes Lloyds Bamk