29 May 2009

Eurozone Economic Confidence Up

Opec decided not to make further output cuts at yesterday's meeting in Vienna. The oil cartel - the world's most important with twelve member countries and 40 per cent of the global oil production - had made three cuts since September 2008.

Back then, oil was at a rock bottom price of $30 a barrel, down from the soaring $147 in July of the same year.

In Europe, there are signs of the worst of the recession being over. At least, the levels of confidence are returning according to figures released this week. According to the index used, executive and consumer confidence is at a six-month high. Those 16 countries that use the Euro are seeing an increase in manufacture and demand.

Overall then, with gloabl stocks, oil and general confidence being back on the cards, it does look like there may be signs of the worst being over.

However, economists are warning against premature excitement. After all, economies are still contracting, just not at the speed they were before.

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