Economic sentiment drops to nearly three-year low in June
Sentiment in the Eurozone plunged in June, reversing the gains from May’s increase. Economic sentiment fell 1.9 points from the previous month to 103.3 points. Despite the drop, sentiment in the Eurozone remains above its long-run average of 100 points.
A sharp decline in industry confidence drove the downturn, which now lies below its long-term average for the first time since 2013. Services sector firms and consumers also turned more downbeat in June. On a bright note, sentiment in the construction sector rose notably. Employment plans deteriorated notably in the industrial sector, but improved in the construction and services sectors.
Looking at the individual countries, economic sentiment deteriorated in 13 countries, including major-players Germany, France, Italy and Spain.