Eurozone: Economic sentiment drops for ninth month in a row
March 28, 2019
Economic sentiment in the Eurozone continued to dwindle in March. According to the European Commission (EC), the economic sentiment indicator (ESI) dropped 0.7 points from February to 105.5 points—the worst result in more than two years. All told, however, sentiment in the Eurozone remained above its long-run average. March’s reading undershot analysts’ expectations of a softer fall to 105.9 points.
A sharp fall in confidence in the manufacturing sector led March’s downturn, along with lower sentiment in the services sector. Employment plans also fell in the industrial and construction sectors significantly. Consumers, meanwhile, grew marginally more confident.
Looking at the individual countries, economic sentiment declined in 10 countries, including major-players Germany, Italy and the Netherlands. In contrast, sentiment rose markedly in Spain despite uncertainty ahead of a tight election race.
Eurozone Private Consumption Forecast
FocusEconomics Consensus Forecast panelists see private consumption growing 1.4% in 2019, which is unchanged from last month’s projection. For 2020, panelists also see consumption expanding 1.4%. Panelists expect investment to grow 2.5% in 2019, which is unchanged from last month’s forecast. In 2020, panelists see investment increasing 2.3%.