Main findings from the ECB’s recent contacts with non-financial companies

This box summarises the main findings from contacts between ECB staff and representatives of 71 leading non-financial companies operating in the euro area. The exchanges mainly took place between 20 and 29 June 2022. According to these contacts, overall activity developed positively in the second quarter of the year. Despite clear signs of weakening demand in some sectors, reflecting the uncertainty created by the war in Ukraine and rising inflation, the recovery in sectors benefiting from the relaxation of pandemic-related restrictions was particularly strong and generally exceeded expectations. Overall, contacts expected activity growth to slow in the coming months, with widespread uncertainty and concern surrounding the outlook after the summer. The frequency and magnitude of selling price increases remained high, as substantial increases in costs (particularly from energy and transport) were passed through the value chain. Most contacts anticipated a similar trend in selling price increases in the third quarter, but some were more hesitant in view of faltering demand, pointing to a potential for some moderation in the overall rate of increase. JEL Classification: E2, E3, L2