Euro Area: Economic sentiment continues steadies in pessimistic territory in October
Sentiment in the Eurozone remained unchanged at September’s to 90.9 points in October, therefore remaining far below February’s pre-crisis level and deeply entrenched below its long-run average of 100 points.
October saw worsening sentiment in the services sector as well as among consumers. Moreover, financial services confidence posted the first drop since May. On the other hand, sentiment in the industry, retail trade and construction sectors continued to improve. Meanwhile, employment expectations turned negative, as employment plans in the services sector declines sizably.
In terms of specific countries, sentiment firmed in Germany and Italy, although it decreased in France and the Netherlands and remained virtually unchanged in Spain.
Commenting on the release, Bert Colijn, senior Eurozone economist at ING, stated:
“October economic sentiment reveals an economy already slowing ahead of more significant lockdown measures. Expect the dreaded double-dip for 4Q GDP.”