European manufacturers are more optimistic that they will be able to raise output, profits and employment in 2007 than they were a year ago, raising the likelihood of interest rate rises, according to a survey to be published on Wednesday.
The momentum with which the European economy entered the new year has rubbed off on manufacturing companies. They now express greater confidence that their factories are likely to operate at higher capacity and that they will be able to raise the prices of the goods they sell.
But big differences exist within Europe. France is noticeably pessimistic, with only 17 per cent more manufacturers expecting higher sales in the next year. In the most confident country, the Netherlands, the equivalent balance of optimism was 80 per cent. The European average was 50 per cent.
A combination of higher output and rising prices would give the European Central Bank ample reason to continue increasing interest rates.
See full Article (paid subscription required).
Posts
