And it is not surprising that central bankers pay it close attention, given that it plays an important role in the business cycle, in the transmission of monetary policy and, as we’ve seen in many advanced economies of late, in the health of the financial system.
Private consumption in the euro area has been on a downtrend since 2011 against the backdrop of the debt problems. Car sales have been particularly weak. Looking at exports and production, exports to outside the area had been solid, primarily in Germany with its competitive edge, owing in part to the depreciation of the euro to date.