Euro Area: Economic sentiment falls in June
Sentiment in the Eurozone fell to 104.0 in June from 105.0 in May. The index nonetheless remained above its long-run average of 100. Sentiment in the construction, industry, services and retail sectors declined. Moreover, employment expectations weakened, and consumer sentiment declined in the month. Additionally, selling price expectations continued to increase notably.
In terms of specific countries, sentiment decreased in France, Germany, Italy, the Netherlands and Spain.
Bert Colijn, senior economist at ING, commented:
“Economic sentiment is a bit at odds with the PMI, providing a clouded view of economic activity in June. Bank lending also remains decent for now. The outlook continues to be one of rapid slowing activity though.”