Bloomberg Surveillance · Monday, July 27, 2026
Despite a weak consumer sector in Europe, economic growth is being sustained by the corporate and manufacturing sectors, particularly in Germany. This resilience is largely driven by increased spending in defense and infrastructure, with a notable shift towards a domestically driven growth story supported by significant stimulus. Exports to the US have also remained resilient despite initial tariff concerns.
“The consumer sector in Europe has been relatively weak and we expect that's going to remain that way until we get significant relief from energy prices.”
“The tariff shock in the end has been quite manageable for Europe and in fact, the of course at subsectoral level, I don't want to say no what has been impacted, but at the end of the day, exports to the US have have remained pretty resilient. And more importantly, Europe is shifting to a more domestically driven growth growth story with very historically large stimulus out of Germany which took a bit of time to kick in, but now it's going at full steam. Defense and infrastructure principally, but also the rest of Europe investing in AI, investing in defense, and that's really sustaining domestic demand very meaningfully.”