Euro area economy likely to have performed strongly again in June quarter

The euro area economic growth is likely to have performed strongly in the second quarter. In the March quarter, the real GDP had expanded 0.6 percent, the most robust sequential pace seen in two years. Furthermore, the growth is becoming increasingly self-sustaining as the growth drivers are widespread and not concentrated in one sector or one spending category.

According to a Wells Fargo research report, the euro area economy is expected to have given a strong performance again in the second quarter. However, inflationary pressures in July would be on the docket on Monday. Unless inflation should accelerate suddenly, which is unlikely to happen, the ECB is expected to continue to keep an accommodative policy stance for the near future.

The July PMIs are also set to come out next week, but they are unlikely to be materially different from the preliminary estimates that were seen recently. According to Wells Fargo, the euro area economy is expected to have grown 0.5 percent sequentially in the June quarter.

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