LONDON/PARIS, Oct 26 - Some of Europe's top companies, including Volkswagen and Unilever warned on Thursday that business in the region is increasingly tough, underscoring concerns that the full impact of high inflation and borrowing is now being felt by consumers.
Chief Financial Officer Graeme Pitkethly said in a call with media that the region was the"most difficult trade environment" as higher prices in its nutrition and ice cream businesses curb spending. The comments came ahead of the European Central Bank's interest rate decision later on Thursday as recession fears resurface. Inflation remains a concern as the Middle East crisis rekindles the risk of an oil supply shock.
Inflation in the euro zone has been on a downward trajectory, although September's 4.3% reading was still double the ECB's 2% target. Underscoring the weakness in its home market, Europe's largest carmaker said its EV order intake had halved to 150,000 in Europe from 300,000 last year. Speaking to media after agreeing to buy a 21% stake in Chinese EV maker Leapmotor, Stellantis CEO Carlos Tavares was blunt about the challenges - EVs in Europe are too pricey without government subsidies.
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