ECB Survey: Eurozone firms optimisitc but feel the heat of trade tensions

In its quarterly Survey on the Access to Finance of Enterprises (SAFE) published on Monday, the European Central Bank (ECB) said that most Eurozone firms remain upbeat on growth prospects but face headwinds from trade tensions.

Key findings

Firms’ one-year-ahead inflation expectation fell to 2.5% from 2.9%, three and five years ahead unchanged at 3.0%.

Most firms affected by trade tensions; manufacturers, firms with exports to US most exposed.

A net 23% of firms are optimistic about developments in the next quarter but report a deterioration in their profits.