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The Conference Board Economics Watch® European View

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.

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