According to a survey, Euro businesses started in year 2016 slightly in a better shape but the January’s pace of growth matched only the weakest seen in the past year. This has increased the pressure on ECB to ease the policy.
This moderate growth came despite of the firms cutting prices for a fourth month at the steepest rate since March – just like the European Central Bank is battling to push inflation higher from a feeble 0.4 percent in January.
The survey was really very disappointing as it indicated on of the weakest expansions seen over the past year and one of the biggest concerns is increasing deflationary pressure.
