Key issues

Europe: economic and political Outlook

The difficulties of the industrial sector: will there be contagion to services?

• Contagion from industry to services has, so far, been moderate. However, services could end up suffering if the risks affecting global growth intensify. The weakness of the industrial sector, which we have recently analysed , 1 is one of the major factors behind the slowdown in the global economy and, in particular, that of the euro area. However, the resilience exhibited by the services sector, which accounts for the bulk of economic activity, 2 continues to drive growth and gives continuity to the expansion. But just how resilient has...