Eurozone consumption remains at a good level

JP Morgan| Recently, one of the main questions in investors´ minds was whether the weakness which has extended throughout the global manufacturing sector would damage Europe´s domestic economy, which until now has remained relatively solid faced with negative external factors over the last year.

The study on ECB loans, in which the banks surveyed share their expectation about the growth in demand for credit, has historically been a good indicator of consumption in the Eurozone economy. The latest report shows that, despite a moderation in Eurozone consumption after very high levels, demand for consumer credit is expected to remain solid in the next few months, which should support consumption.

But it is also true that if weakness in the manufacturing sector continues, this could lead to consumers deferring expenditure, which could in turn lead to a slowdown in the domestic economy.