10/28, 2:37 PM (Source: TeleTrader)
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Lagarde: Recovery momentum has moderated

European Central Bank (ECB) President Christine Lagarde said on Thursday that the euro area "continues to recover strongly, although momentum has moderated to some extent." However, the ECB still expects output to exceed its pre-pandemic level by the end of the year, adding that "the grip of the pandemic on the economy has visibly weakened."

Lagarde said inflation is rising "primarily because of the surge in energy prices, but also as the recovery and demand are outpacing constrained supply." She said the ECB foresees inflation rising further in the near term, but declining in the course of next year. She warned the outlook for the coming quarters is "clouded" by shortages of material, equipment and labor in the manufacturing sector.

Breaking the News / DJ