After the surge in July, the Economic Sentiment Indicator continued to improve in both the European Union and the eurozone, although at a slower pace. It rose to 102.7 (an increase of 0.6 of a point) in the EU and to 101.8 (an increase of 0.7 of a point) in the eurozone.

The Economic Sentiment Indicator is published by the European Commission’s Directorate General for Economic and Financial Affairs which conducts regular harmonised surveys for different sectors of the economies throughout the EU.

Among the largest member states, the United Kingdom registered the most significant gain (+1.5) followed by Germany (+1.1).

Improvements were less pronounced in Spain (+0.9) and in France (+0.4). In contrast, sentiment deteriorated in Italy (+0.9), Poland (+0.9) and even more so in the Netherlands.

Sentiment in Malta decreased by 2.9 points, the first decline in seven months.

Sentiment in industry improved by one point in the EU and remained broadly unchanged in the eurozone. The majority of respondents in this sector reported sizeable improvements in their order books. However, managers were cautious regarding their production expectations.

Confidence among consumers improved considerably, by three points, in both the EU and the eurozone. Widely-felt optimism about the general economic situation as well as further considerable easing of unemployment fears set the tone. The confidence indicator in services decreased by one point in the EU and improved by one point in the eurozone. Managers’ pessimistic assessment of the past business situation in the UK explains the difference in trends between the EU and the eurozone.

The sentiment in the retail sector gained one point in the EU and remained broadly unchanged in the eurozone.

The indicator in construction remained broadly unchanged in both areas.

After a sharp drop in July,confidence in financial services – not included in the ESI – registered a significant increase in the EU (+7) due to a substantially brighter future demand outlook.

In the eurozone, the confidence indicator remained broadly unchanged, after having improved in July.

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