In this issue of 16 May 2023: the editorial of William De Vijlder, the purchasing managers' index (PMI) analysis, and the latest market overview and economic scenario.
How much and how quickly inflation will decline in the Eurozone is of key importance for the ECB, households, firms and financial markets. There is concern that disinflation might be slower than expected until now. The latest ECB survey of professional forecasters shows an increase in the number of participants expecting inflation to remain elevated. Inflation persistence can have different sources: a succession of shocks, staggered price adjustment by firms, price and wage increases that try to compensate for the past increase in costs and the loss of purchasing power, evolving inflation expectations. Going forward, the tightness of the labour market, the strength of wage developments and the momentum in service price inflation are key factors to monitor.
April was marked by the stabilisation of the Purchasing Managers Index (PMI) for the manufacturing sector, after a slight decline in March.
GDP growth, inflation, interest rates and exchange rates
