##h growth. businesses are expanding their investment only slowly, while housing investment continues to fall. exports have weakened, especially for goods. 1 / 4 bis - central bankers'speeches although incomes rose in the second quarter, households consumed less, contrary to expectations. the saving rate stood at 15. 7 per cent in the second quarter, well above the pre - pandemic average of 12. 9 per cent. at the same time, recent survey evidence points to a gradual recovery in household spending. the labour market remains resilient. the unemployment rate stayed at its historical low of 6. 4 per cent in august. however, surveys point to slowing employment growth and a further moderation in the demand for labour. we expect the economy to strengthen over time, as rising real incomes allow households to consume more. the gradually fading effects of restrictive monetary policy should support consumption and investment. exports should contribute to the recovery as global demand rises. fiscal and structural policies should be aimed at making the economy more productive, competitive and resilient. that would help to raise potential growth and reduce price pressures in the medium term. to this end, it is crucial to swiftly follow up, with concrete and ambitious structural policies, on mario draghi's proposals for enhancing european competitiveness and enrico letta's proposals for empowering the single market. implementing the eu's revised economic governance framework fully, transparently and without delay will help governments bring down budget deficits and debt ratios on a sustained basis. governments should now make a strong start in this direction in their medium - term plans for fiscal and structural policies. inflation annual inflation fell further to 1. 7 per cent in september, its lowest level since april 2021. energy prices dropped sharply, at an annual rate of - 6. 1 per cent. food price inflation went up slightly, to 2. 4 per cent. goods inflation remained subdued, at 0. 4 per cent, while services inflation edged down to 3. 9 per cent. most measures of underlying inflation either declined or were unchanged. domestic inflation is still elevated, as wage pressures in the euro area remain strong. negotiated wage growth will remain high and volatile for the rest of the year, given the significant role of one - off payments and the staggered nature of wage adjustments. inflation is expected to rise in the coming months, partly because previous sharp falls in energy prices will drop out of the annual rates. inflation should then decline to target in the course of next year. the disinfl

tax cuts. procedurally, it is crucial to underpin the fiscal policy framework with a decisive and consistent implementation of the rules of the treaty and of the stability and growth pact, and rigorous monitoring and peer pressure amongst member states. by the same measure, bold structural reforms in the labour and product markets would not only increase the euro area's growth potential and enhance its ability to better withstand external shocks, but it would also eliminate a great deal of the uncertainty currently overshadowing long - term planning and perspectives. this, in turn, would also have positive effects over the shorter term. in particular, renewed momentum in the process of structural reform would foster consumer and investor confidence and thereby greatly facilitate spending and investment decisions in the euro area. we are now at your disposal for questions.