|2023/01/20 / Erste Group Research|
Corporate sentiment should rise further
Next week, a first flash estimate of Eurozone PMI data for January will be published. Faced with an energy crisis as well as record inflation, business sentiment in 2022 weakened continuously until October. From November, however, manufacturing sentiment rose slightly for the first time after a long period of downturn.
We expect that the sentiment of Eurozone purchasing managers should continue to rise slightly in January. China's opening up after the end of the zero-covid policy is an additional positive factor for the outlook of the Eurozone's foreign trade.
On the other hand, the interest rate environment represents an uncertainty factor for the economic outlook. The extent to which the interest rate steps already taken by the ECB will have a dampening effect on the economy in 2023 must now be closely monitored. After the ECB announced further interest rate steps in December, monetary policy will create an even stronger headwind for the economy.
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|Author||Erste Group Research|
|Product name||Week ahead|
|Topic in focus||Macro/ Fixed income|
|Economy in focus||Eurozone, United States|
|Currency in focus||Euro, US Dollar|
|Sector in focus||-|
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