MNI BRIEF: EZ Economy Slowing, Labour Mkt Resilient-Lagarde
MNI (LONDON) - Survey evidence suggests the euro area economy is slowing from modest strength in recent quarters, though the labour market remains resilient, ECB President Christine Lagarde said on Thursday.
Speaking to the press after the ECB again cut interest rates by 25BP, Largarde noted that there were some signs of easing in the labour market, despite unemployment being at a record low 6.3%. The job availability ratio fell to 2.5%, down 0.8 percentage point on its recent high. (See MNI ECB WATCH: ECB To Cut, Likely To Change Language )
Overall, ECB staff see the economy recovering at an even slower rate than envisioned in September, with growth in 2024 seen at 0.7% and 1.1% in 2025, and with risks still seen to the downside, Lagarde said. (See MNI SOURCES: ECB Heads For 25BP Cut; Risks From Trump, Germany )
ECB Chief Economist Philip Lane will speak at an MNI Webcast event on Dec 19. Register here.