Euro Area: Economic sentiment virtually unchanged in May
Sentiment in the Eurozone rose to 105.0 in May from 104.9 in April. The index therefore remained above its long-run average of 100. Sentiment in the services and retail sectors declined, while sentiment in the construction and industry sectors dipped. Moreover, employment expectations strengthened somewhat, while consumer sentiment declined in the month.
In terms of specific countries, sentiment increased in France, Germany, Italy and Spain, while it declined in the Netherlands.
Bert Colijn, senior economist at ING, commented:
“Since the war in Ukraine started, sentiment has been much weaker than before. While the index has been trending down, this is a level that is historically still quite strong and not usually associated with an economic recession. Nevertheless, signs that the economy continues to cool are significant, especially in manufacturing right now.”