As a result, the driving force of economic activity will shift gradually from the corporate sector to the household sector. The deceleration in business fixed investment is expected to stave off a build-up of capital stock and contribute to achieving a sustained period of growth.
In our view, the risks to this outlook remain broadly balanced in a context of elevated uncertainty. As regards price developments, we are observing continued upward pressure on prices, especially in the earlier stages of the production process. Inflation in the euro area stood at 2.7% in May, after 2.8% in April.