Lagarde: Econ Expected To Weaken Further; Energy, Terms Of Trade Weigh

ECB President Lagarde begins the press conference by reading from the "Monetary policy decisions" statement as usual - and moves on to the description of the economic landscape:

• Economic activity is likely to have slowed significantly in Q3 and we expect further weakening through to the beginning of 2023.
• High inflation continues to dampen spending and production. Severely disruptions to the gas supply have further impacted.
• Demand for services is slowing after a strong performance in previous quarters. Survey based measures for new orders in manufacturing shows a slowdown.
• Worsening terms of trade as prices of imports rise higher than exports are weighing on euro area incomes.
• The labour market continued to perform well in Q3 and the unemployment remains at an historically low level. While short term indicators show jobs were be created in Q3, the weakening of the economy could lead to somewhat higher unemployment in the future.