Economic sentiment continues to drop in EU and eurozone
The Economic Sentiment Indicator for both the European Union and the eurozone continued to decline in March, but more slowly than in the first two months of the year amid signs of stabilisation in some sectors. The survey, conducted by the European...
The Economic Sentiment Indicator for both the European Union and the eurozone continued to decline in March, but more slowly than in the first two months of the year amid signs of stabilisation in some sectors. The survey, conducted by the European Commission's Directorate General for Economic and Financial Affairs shows that the ESI fell by 0.6 points in the EU and by 0.7 points in the eurozone to 60.3 and 64.6 respectively. The indicators for both regions now stand at their lowest levels since the current series was launched in January 1985.
The fall in the ESI is attributed to the deteriorating sentiment in the industry and services sectors, which fell by the same amount (-2 points) in both regions. In other sectors, a mixed picture is emerging. Consumer sentiment stabilised in the EU, but fell by one point in the eurozone.
Retail trade increased by two points in the EU and by one point in the eurozone, reinforcing the rebound which started in February. Construction in both regions stabilised at the levels seen in February.
Among the largest member states, Italy witnessed the most significant decline in sentiment (-4.5 points), while the fall was more marginal in France and Poland (-1), Germany (-0.8) and the UK (-0.4). Economic sentiment recovered slightly in the Netherlands (1.3) and in Spain (0.8).
Malta's ESI declined by 1.5 points from 73.8 to 72.3.
The financial services confidence indicator - not included in the ESI - improved by one point in the EU but deteriorated by four points in the eurozone, reversing the previous month's gain. Compared to February, managers' expectations of demand for their services worsened in both areas - significantly in the eurozone, but to a much lesser extent in the EU.
The European Commission conducts regular harmonised surveys for different sectors of the economies in the EU and in the applicant countries.
They are addressed to representatives of the industry (manufacturing), the services, retail trade and construction sectors, as well as to consumers.
The fall in the ESI is attributed to the deteriorating sentiment in the industry and services sectors, which fell by the same amount (-2 points) in both regions. In other sectors, a mixed picture is emerging. Consumer sentiment stabilised in the EU, but fell by one point in the eurozone.
Retail trade increased by two points in the EU and by one point in the eurozone, reinforcing the rebound which started in February. Construction in both regions stabilised at the levels seen in February.
Among the largest member states, Italy witnessed the most significant decline in sentiment (-4.5 points), while the fall was more marginal in France and Poland (-1), Germany (-0.8) and the UK (-0.4). Economic sentiment recovered slightly in the Netherlands (1.3) and in Spain (0.8).
Malta's ESI declined by 1.5 points from 73.8 to 72.3.
The financial services confidence indicator - not included in the ESI - improved by one point in the EU but deteriorated by four points in the eurozone, reversing the previous month's gain. Compared to February, managers' expectations of demand for their services worsened in both areas - significantly in the eurozone, but to a much lesser extent in the EU.
The European Commission conducts regular harmonised surveys for different sectors of the economies in the EU and in the applicant countries.
They are addressed to representatives of the industry (manufacturing), the services, retail trade and construction sectors, as well as to consumers.