ECB warns of slowdown as trade fears grow

European Central Bank chief Mario Draghi warned yesterday of "some moderation" in the eurozone's growth pace as protectionist threats mount, in a more pessimistic assessment of the region's outlook than in previous months, reports Frankfurt.

"Following several quarters of higher than expected growth, incoming information since our meeting in early March points towards some moderation while remaining consistent with a solid and broad-based expansion of the euro area economy," Draghi told reporters in Frankfurt.

A slew of hard and soft economic data in recent months has suggested the single currency area lost some momentum at the start of the year after a robust 2017.

Concerns about protectionist threats, geopolitical risks and global trade tensions have added to doubts about the strength of the eurozone recovery.

"It's quite clear that since our last meeting broadly all countries experienced... some moderation in growth or some loss of momentum," Draghi said after a meeting of the bank's governing council.

"These declines were sharp and in some cases the extent of these declines was unexpected," he went on.

A key survey of eurozone business activity, the purchasing managers' index, was flat in April at 55.2, data company IHS Markit said this week, describing the region's economy as "stuck in a lower gear".

In Germany meanwhile, Europe's powerhouse economy, the latest surveys have recorded a drop in confidence among consumers, businesses and investors. German industrial orders and production data have also disappointed.

Draghi warned that rising protectionism was starting to pose a "more prominent" risk to the eurozone outlook, after US President Donald Trump fanned fears of a global trade war.

ECB warns of slowdown as trade fears grow

European Central Bank chief Mario Draghi warned yesterday of some moderation in the eurozones growth pace as protectionist threats mount, in a more pessimistic assessment of the regions outlook than in previous months, reports Frankfurt. Following several quarters of higher than expected growth, incoming information since our meeting in early March points towards some moderation while remaining consistent with a solid and broad-based expansion of the euro area economy, Draghi told reporters in Frankfurt. A slew of hard and soft economic data in recent months has suggested the single currency area lost some momentum at the start of the year after a robust 2017. Concerns about protectionist threats, geopolitical risks and global trade tensions have added to doubts about the strength of the eurozone recovery. Its quite clear that since our last meeting broadly all countries experienced... some moderation in growth or some loss of momentum, Draghi said after a meeting of the banks governing council. These declines were sharp and in some cases the extent of these declines was unexpected, he went on. A key survey of eurozone business activity, the purchasing managers index, was flat in April at 55.2, data company IHS Markit said this week, describing the regions economy as stuck in a lower gear. In Germany meanwhile, Europes powerhouse economy, the latest surveys have recorded a drop in confidence among consumers, businesses and investors. German industrial orders and production data have also disappointed. Draghi warned that rising protectionism was starting to pose a more prominent risk to the eurozone outlook, after US President Donald Trump fanned fears of a global trade war.