Eurozone Growth Set to Remain Weak as Italy Recession Looms

The euro area is showing no signs of a meaningful economic rebound, with Italy on the verge of recession after the populist government picked a fight with European authorities over spending plans. Momentum in the 19-nation region is at the weakest level in more than two years, and trade and political uncertainty are dragging confidence lower, Bloomberg News reported. Activity last month was weighed down by Italy, where the risks of a second quarterly contraction are rising. The data come at a crucial time for the European Central Bank, where policy makers are confronting continued signs of economic weakening before a final decision on their bond-buying program. Officials have left no doubt they’re determined to cap asset purchases at year-end, pledging to maintain a significant degree of stimulus through reinvestments of maturing bonds. “The region remains stuck in a soft-patch,” said Chris Williamson, an economist at IHS Markit. Read more