There has also been a sharp deterioration in labour markets across the euro area, feeding through to incomes and to consumption patterns. These developments, among others, have caused sharp downward revisions in the recent macroeconomic projections for the euro area, released by Eurosystem staff.
(Figure 2: Euro area Purchasing Managers’ Indices) The latest projections for 2020 to 2022, have changed greatly compared to those released just three months ago. It is not only the numbers that look different in this round of projections; there has also been a change in how the uncertainty surrounding the key forecasts is presented.