Eurozone: Economic sentiment deteriorates further in June
June 28, 2012
The Economic Sentiment Indicator (ESI) published by the European Commission fell to 89.9 points in June, down from a revised 90.5 points in May (previously reported: 90.6 points). The reading marked a third consecutive drop in the index but was broadly in line with market expectations, which had sentiment easing to 89.6 points. Currently, the index sits at its lowest level since October 2009 and remains well below its long-term average of 100 points, suggesting deteriorating prospects for the Eurozone economy going forward. The decline was driven by worse results in three out of the five main categories, with the largest drop experienced in the services sector, followed by the industry sector. In contrast, sentiment improved in the retail and in the construction sectors. At a country level, the largest declines were seen in Slovenia (-3.6 points) and Austria (-3.4 points). Among the major economies in the region, sentiment deteriorated in France (-1.5 points) and Germany (-1.4 points), while it improved in both Spain (+1.0 points) and Italy (+0.9 points). Estonia is currently the country boasting the highest confidence level in the region with 102.9 points, followed by Germany with 100.5 points.
Author: Armando Ciccarelli, Head of Data Solutions