In July the Economic Sentiment Indicator for the European Union and the eurozone improved further, registering the fourth consecutive increase in both blocs since March.

The ESI increased by 3.9 points in the EU, and by 2.8 points in the eurozone, to 75 and 76 respectively. Malta witnessed an increase of 3.7 points.

The ESI is conducted by the European Commission's Directorate General for Economic and Financial Affairs.

The increase in the ESI was the result of a general improvement in sentiment in all sectors except construction. Services improved notably in the EU (+3.6 points) and to a lesser extent in the eurozone (+2.1). Retail trade recovered in both areas (+2.9 in the EU and +3.5 in the eurozone), while industry improved in both the EU (+2.7) and the eurozone (+2.2). Likewise, sentiment among consumers picked up again by 1.9 in the EU and 2.1 in the eurozone. Construction, in contrast, remained at the June levels.

The majority of EU member states registered an improvement. Among the largest member states, the UK (+ 5.0 points), Spain (+3.9), Italy (+3.5) and Germany (+ 3.2) recorded significant increases in sentiment, while the rise was marginal in France (+0.3), The Netherlands (+0.2) and Poland (+0.1).

The financial services confidence indicator - not included in the ESI - moved up by two points in both areas. While managers' assessment of the business situation and demand over the past three months improved markedly, expectations of demand for the next three months decreased substantially compared to the improvement registered last month.

The Directorate General for Economic and Financial Affairs conducts regular harmonised surveys for different sectors of the economies in the European Union 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.