Euro Area: Economic sentiment takes a hit in September
Sentiment in the Eurozone fell to 93.7 in September from 97.3 in August. The index therefore moved further below its long-run average of 100, signaling persistent pessimism.
Sentiment in the industry, construction and services sectors declined. Moreover, employment expectations lost some ground. Additionally, consumer sentiment plunged in the month. Furthermore, selling price expectations increased again in all sectors.
In terms of specific countries, sentiment decreased in France, Germany, Italy, the Netherlands and Spain.
Bert Colijn, senior economist at ING, commented:
“The eurozone economy is slowing rapidly as high prices reduce business activity and dampen consumer demand. We expect that a recession could, therefore, have already started.”