Eurozone: Economic sentiment drops to lowest in almost three years
July 30, 2012
The Economic Sentiment Indicator (ESI) published by the European Commission fell to 87.9 points in July, down from a revised 89.9 points in June. The reading, which marked a fourth consecutive drop in the index, came in below market expectations thathad sentiment falling to 88.9 points. Currently, the index sits at its lowest level since September 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 all five main categories, with the largest drop experienced in the industrial sector. At a country level, the largest declines were seen in Slovakia (-4.0 points) and Germany (-3.7 points). Among the other major economies in the region, sentiment deteriorated in France (-2.3 points) and Spain (-1.4 points), whereas it improved in Italy (+1.3 points). Estonia is currently the country boasting the highest confidence level in the region with 101.9 points, followed by Malta with 97.7 points.
Author: Armando Ciccarelli, Head of Data Solutions