Economic activity in the euro area is mainly determined by domestic factors such as long-term financing costs and disposable income developments, which have remained favourable. In addition, the euro area's high rates of capacity utilisation, the ongoing growth in employment and continued declines in unemployment should help to maintain solid growth in private investment and consumption.
All in all, the overall level of confidence in the euro area has remained high. Economic indicators relating to developments around the turn of the year support the view that economic growth will remain fairly robust for the period ahead.