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Consumer boost for German data

Thursday, February 25, 2016 - 01:39

There's more positive economic data from Germany and Spain - this time from consumers. But as Jagdip Cheema reports, there are still concerns about the impact of the current market volatility on the euro zone.

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Rising consumer confidence provided a timely boost for the German economy. It rose to 9.5 points for March, its highest level since July 2015. And those solid figures dampened fears that the refugee crisis may slowdown the euro zone's premier engine. Low unemployment and a solid labour force appear to be easing those concerns, but not everyone is convinced. Peter Dixon is from Commerzbank. (SOUNDBITE) (English) COMMERZBANK GLOBAL ECONOMIST, PETER DIXON "There is some evidence I think, the Germany economy is losing a little bit of momentum and it's not going to grow particularly quickly this year." To add to those fears euro zone inflation was revised downwards to 0.3% in January. In Italy, manufacturing morale fell for a fourth successive month. Consumer confidence also dipped (to 114.5) to its lowest level since September 2015. Some believe the Italian government should be doing more. Jeremy Cook is from World First. (SOUNDBITE) (English) WORLD FIRST, CHIEF ECONOMIST, JEREMY COOK, "This week is actually the two year anniversary of Matteo Renzi coming into power as the Italian prime minister, and we have to look back and say what has really changed? Q4 growth in Italy was only 0.1%, so a fairly miniscule number after a bruising triple dip recession." The picture was brighter in Spain. Stronger household spending boosted fourth quarter growth, and is expected to continue throughout the year despite the current political deadlock. But while questions over a possible Brexit remain unanswered, the euro zone economy will continue to be surrounded by uncertainty.

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Consumer boost for German data

Thursday, February 25, 2016 - 01:39