Consumer confidence in the Euro
Area has stopped its decline in recent months, backed by slow but continued
labor market improvements. Wages stopped rising in 2018Q4, providing some relief
for businesses as they see their top revenue lines weakening. Overall, the Euro
Area continues its GDP growth slowdown from 1.8 percent in 2018 to 1.3 percent
in 2019, which is close to its medium-term trend. Brexit and China shocks will
have a modest impact on the Euro Area economy, but the combination of both
shocks could hit confidence and spell greater trouble.