Bank lending to the private sector probably shrank further in October

Figures from the euro zone this week are likely to show why most economists expect the single currency area, its debt crisis far from over, to underperform yet again in 2014.

Bank lending to the private sector probably shrank further in October, with unemployment adidas jeremy scott originals  stuck at a record high of 12.2 percent, according to economists polled by Reuters.

And while inflation this month is likely to have ticked up to 0.8 percent from 0.7 percent, it remains well short of the European Central Bank’s target of just below 2 percent.

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The threat of outright deflation prompted the ECB to halve its main policy rate to 0.25 percent on November 7, and some of the bank’s policy makers have said it stands ready to provide further stimulus if necessary.

“I don’t think they will ease again, but it’s pretty clear where the risk is. If we get another downside surprise on either growth or inflation, then they’ll move again,” said Darren Williams, an economist with fund manager AllianceBernstein in London.

Williams said he expected a stronger year for the euro zone economy in 2014, after aadidas spring blade shoes  contraction in 2013, but still not a strong one. Governments are squeezing their budgets less fiercely, while the ECB’s easy monetary policy should gradually filter through to the real economy.

“Unless there’s another shock, we’re clearly past the worst,” he said.

In the United States a raft of housing reports will be the highlight of a week shortened by the Thanksgiving Day holiday.

Housing starts are 19 percent higher than a year ago and housing under construction is at its highest level in more than four years, according to Wells Fargo economists.

But they said evidence to date for the fourth quarter   adidas energy boost  suggests the economy is losing momentum heading into the year-end and, with price pressures firmly contained, most market participants now expect the Federal Reserve will wait until March to start reducing its bond buying,


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