Eurozone saw improvement in business activity before US tariffs announcement

The European Central Bank (ECB) has presented the results of research, demonstrating the improvements of business activity in the Eurozone before the employment of new trade duties from Trump’s administration. The survey conducted among 79 top companies showed first signs of production sector recovery after the long-term decrease. 

Companies' CEOs have mentioned the increasing demand on equipment and machines that can be a sign of building sector revival. Survey participants also reported some improvement in employment prospects. At the same time, the focus of business remains on improving operational efficiency.

As Bloomberg reports, selection of data took place from March 26 till April 2. It was before new US trade measures, that later caused the financial instability, were announced. The European Central Bank (ECB), commenting on the current situation, warned of increasing downside risks for the region's GDP and noted the significant impact of trade conflicts on the slowdown in economic development. 

According to the ECB survey, companies preferred to maintain a wait-and-see attitude on US trade policy until the end of March, taking their time to revise major investment plans.