ECB's Lagarde: Economy Losing Momentum Faster Than Expected

The euro area's economic recovery is slowing faster than expected due to rising COVID-19 cases and containment measures. While manufacturing is recovering, the services sector is lagging. Fiscal policies support households and firms, but consumer caution and business investment challenges persist. Inflation is low due to weak demand and energy prices. Monetary policies since March aim to maintain favorable financing conditions and support economic activity.

What signals indicate about the euro area economic recovery?

How has the rise in COVID-19 cases affected economic activity?

What factors are contributing to the cautious behavior of consumers?

What is the impact of low energy prices on headline inflation?

In what ways are monetary policy measures supporting the economy?