S&P Global Ratings has raised its 2026 growth expectations for Europe following stronger-than-expected consumer demand, but warned that persistent inflation, higher long-term interest rates and the summer drought continue to create pressure for consumer markets, costs and planning horizons relevant to textile and apparel supply chains. The ratings agency expects the eurozone and UK economies to grow by 0.9 per cent and 1.3 per cent, respectively, in 2026, followed by 1.1 per cent growth in 2027. It said its 2026 growth forecasts have been revised upward, while projections for subsequent years remain broadly unchanged. Inflation forecasts have been revised slightly lower for 2026 but higher for 2027 and 2028.
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