Daily Management Review

Economic sentiment indicator in Eurozone falls to its lowest in 19 months


Eurozone's economic mood indicator hit its lowest level in 19 months. Analysts anticipated a less pronounced fall.

Stephanie Jones
Stephanie Jones
According to the press office of the European Commission, the indicator of economic sentiment (ESI) in the countries of the euro zone declined for a month by 1.3 percentage points, reaching 97.6 points in August.

Bloomberg notes that this is the lowest level of ESI in the previous 19 months. The agency surveyed analysts who said that the indicator would drop to 98 points. The forecast from the economists surveyed by Reuters remained the same.

The largest EU economies, the Netherlands (minus 4.3 points), Germany (minus 2.5 points), France, Poland, and Italy all had significant declines in the ESI index (minus 1.2 points). Spain stood out with moderate growth of + 0.8%.

The index declined from 3.4 to 1.2 points in industry, where it was most noticeable, and from 10.4 to 8.7 points in services. According to Bloomberg, sentiment in the manufacturing and service sectors deteriorated as production was threatened by energy shortages and demand was restrained by rising prices.

source: bloomberg.com