A WAVE of weak data in the Eurozone points towards a recession, analysts are warning, piling more pressure on Eurozone leaders.
Figures out yesterday from the European Commission showed consumer and business confidence worsening into October.
Economic sentiment slipped to a 22-month low, falling 0.2 points to 94.8. Consumer confidence declined 0.8 points to -19.9 on September’s figures.
“The evidence suggests Italy and Spain are in recession, and the Eurozone as a whole could shrink this quarter,” said Lombard Street Research’s Jamie Dannhauser.
Economists stress immediate pressure is on Berlusconi to reform Italy’s finances. He needs to avoid a default, overwhelming the bailout fund.
Markets have priced in a 0.25 per cent rate cut in December, though some analysts hope it happens sooner.
Germany recorded no inflation this month, upping the chance of a cut.
Markets hope incoming European Central Bank (ECB) boss Mario Draghi will cut interest rates next week.