Weekly Economic Briefings > Eurozone Weekly Economic Briefing > Eurozone

This weeks survey data carried on where last weeks IFO survey left off, pointing to a marked post-Brexit decline in activity on the continent. New orders in particular appear to have been dented by the slump in UK investment activity. Service sector activity, however, is holding up and we continue to look for a solid 0.4% per quarter pace of growth in the second half of the year.Inflation, too, undershot in August which may reflect the sharp appreciation of the euro earlier in the month. While this weeks signs of low inflation and weaker growth may give the ECB some pause for thought, we expect the ECB to be more forward looking, focusing on the underlying strength in activity and the fact that inflation should show a marked pick up in coming months.