A poll of 34 economists conducted by the Financial Times shows that 31 respondents expect the eurozone’s economy to grow by an average of 2.3 per cent in 2018, with a substantial minority expressing the view that the currency area has the potential for an even stronger expansion.

That compares with growth of 2.4 per cent in 2017, according to the European Central Bank’s latest forecast. Respondents think that French President Emmanuel Macron’s reforms to France’s labour market and possible pro-EU policies from a new ‘grand coalition’ German government, together with favourable global conditions, will provide an impetus for the region’s economy.

Meanwhile in the UK, private sector business activity ended the year on a positive note after manufacturers, service sector companies and retailers reported the sharpest rise in output in two years, according to the Confederation of British Industry (CBI). According to the latest private sector growth indicator, the balance of firms reporting a rise in output was 19 per cent, compared with six per cent in the three months to November.

Looking ahead, the CBI said private sector growth is set to return to a more sedate pace of four per cent over the next three months.

Finally in the USs, after reporting an unexpected jump to its highest level in 17 years in November, the Conference Board consumer confidence index showed a much bigger than expected pullback in December. The consumer confidence gauge slumped to 122.1 in December from a downwardly revised 128.6 in November, as Americans became less upbeat about the outlook for the economy and job prospects. Economists had expected the consumer confidence measure to edge down to 128.0. However, even with the latest cooling off, the share of respondents who expect that their incomes will rise in the next six months increased to the highest level since March.

This report was compiled by Bank of Valletta for general information purposes only.