EU consumers cut back on cars
INFLATION stayed high in the Eurozone in April, official figures showed yesterday, while manufacturing took a blow from plummeting car registrations.
Consumer prices rose 2.6 per cent in the Eurozone in the year to April, according to Eurostat.
The figure is down slightly on the 2.7 per cent in the previous month, but still well above the European Central Bank’s two per cent target, limiting the Bank’s ability to stimulate growth.
Meanwhile new passenger car registrations in the EU fell to 1.02m in April, the European Automobile Manufacturers’ Association reported – a 6.9 per cent drop on the year.
Nissan reported a fall in sales of 21.1 per cent in the month, while Renault saw a drop of 17.1 per cent.
However, the currency union did increase exports in the first quarter, providing an additional source of economic growth – the trade in goods balance rose to €8.6bn (£6.87bn) in March, up from €1bn in the same month of 2011.
A four per cent rise in exports was largely responsible, and now stands at €164.9bn – though economists warned demand from key market China could be shaky in coming months.
“While Eurozone export growth is predicated upon more than exports to China alone, nonetheless these global developments do suggest that the outlook for euro area exporters is likely to be cautious until global demand re-accelerates,” warned Barclays’ Julian Callow.