ECB reports Euro area companies anticipate slower wage growth, easing inflation concerns.

The European Central Bank (ECB) reports that Euro area companies anticipate slower wage growth, offering relief as inflation decreases. Wage pressures are a concern, as higher salaries could prolong inflation above the 2% target. In Q1 2024, financing conditions tightened, but less than in Q4 2023, with fewer firms reporting a reduction in loan availability. Companies' median expectations for annual inflation in one, three and five years stand at 3.4%, 3.0%, and 3.0% respectively.

April 08, 2024
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