ECB Economic Bulletin: ECB sees scope for further consumption boom

In its monthly economic bulletin published on Wednesday, the European Central Bank (ECB) suggested that the Eurozone private sector consumption has further room for growth.

Key Quotes (via Reuters):

“Private consumption has been the main driver of the recent economic expansion, but there is still scope for further growth,” 

“As labor markets continue to improve, consumer confidence should remain elevated and private consumption should rise further.”

The ECB argued that recovery in private consumption has so far been weak, particularly for lower-income families, whose consumption levels have yet to recover to their pre-crisis level.

Households in the poorest and least educated segments of society, which are now among the main beneficiaries of employment growth, are also more likely to consume non-essential items.

“Losses from the financial crisis have not been recouped everywhere.”

“Private consumption in Germany and France stands about 10 percent higher than before (the recession) but by contrast, consumption in Italy and Spain has not yet recovered completely.”

“There is little evidence that low-interest rates have led to generalized increases in household indebtedness, supporting the view that the overall economic expansion is sustainable.”