Private consumption has increased its resilience, supported by steady improvement in the employment and income situation as well as replacement demand for durable goods. Public investment also has been increasing clearly since the turn of the fiscal year. These developments show that the current economic expansion is not relying on a single factor, but rather is supported by multiple factors.
This was triggered by difficulties in the US subprime mortgage market and resulted in a protracted drying up of liquidity in a range of markets. Despite central bank actions, both at Eurosystem and global levels, to inject liquidity to improve the functioning of money markets, these markets have become increasingly impaired.