Euro Area: Economic sentiment strengthens in March
Sentiment in the Eurozone rose to 96.3 in March from 95.5 in February. Consequently, the index remained below its long-run average of 100, signaling persistent pessimism.
Sentiment in the industrial, retail and services sectors improved. Moreover, consumer confidence strengthened. Meanwhile, sentiment in the construction sectr remained unchanged.
In terms of specific countries, sentiment improved in France, Germany and Italy, while it decreased in the Netherlands and Spain.
Commenting on the release, ING’s Bert Colijn stated:
“All in all, the eurozone economy seems to be showing more signs of an imminent pickup in growth. Nothing spectacular, but an end to stagnation is in the making nonetheless. With inflation expectations getting more benign for services, it looks like the ECB can contribute to a more favourable environment with rate cuts starting in June.”