Eurozone: Economic sentiment continues to deteriorate
October 30, 2012
The Economic Sentiment Indicator (ESI) published by the European Commission fell to 84.5 points in October, down from 85.2 points in September. The reading, which marked the seventh consecutive drop in the index, was broadly in line with market expectations that had sentiment moderating to 84.4 points. Currently, the index sits at its lowest level since August 2009 and remains well below its long-term average of 100 points, suggesting deteriorating prospects for the Eurozone economy going forward. The decline was broad based, as three out of the five main categories experienced worse results compared to the previous month. At a country level, the largest declines were seen in Luxembourg (-11.0 points) and Slovakia (-6.4 points). Among the major economies in the region, sentiment deteriorated in France (-1.8 points) and Germany (-1.4 points), whereas it improved in Spain (+1.8 points) and Italy (+0.5 points). Estonia is currently the country boasting the highest confidence level in the region with 100.1 points, followed by Malta with 95.8 points.
Author: Armando Ciccarelli, Head of Data Solutions