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Investing.com -- Euro zone firms remain optimistic about their growth prospects despite experiencing pressure on their profits, partly due to trade tensions, according to a European Central Bank survey released Monday.
The ECB’s quarterly Survey on the Access to Finance of Enterprises showed that a net 8% of firms reported increased turnover over the past three months, while a net 23% expressed optimism about developments in the next quarter.
Despite lukewarm economic growth in recent years, businesses have maintained high employment levels as they continue to anticipate an eventual upturn.
The survey revealed that firms are seeing a deterioration in profits, with the decline being more widespread among small and medium-sized enterprises.
Most companies reported being affected to some extent by trade tensions, with those exporting to the United States and firms in the manufacturing sector being the most exposed.
While longer-term inflation expectations remained unchanged, firms reduced their price growth expectation for one year ahead to 2.5% from 2.9%, the ECB added.
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