ECB Bulletin: Eurozone Private Consumption Will Boost Economic Growth
In its monthly economic bulletin, the European Central Bank suggested that the Eurozone private sector consumption has further room for growth. According to the ECB, private consumption has been the main driver of the recent economic expansion, but there is still scope for further growth. Also, the ECB argued that recovery in private consumption has so far been weak, particularly for lower income families, whose consumption levels have yet to recover to their pre-crisis level.
Euro zone growth has slowed sharply over the past two quarters, raising fears that the bloc's remarkable expansion, now into its sixth year, may be coming to a premature end. Eurozone slowdown comes at a particularly sensitive time for the ECB as it dials back stimulus. It plans to end its 2.6 trillion euro bond purchase scheme by the close of the year, in the hope the economic recovery is strong enough to continue with more modest central bank support.