Economic sentiment drops to over three-year low in July
Sentiment in the Eurozone continued to wane in July, falling slightly to an over three-year low. Economic sentiment fell 0.6 points from the previous month to 102.7 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, and sentiment lied below its long-term average for the second consecutive month. time since 2013. Services sector, retail trade and construction firms also reported lower confidence in July. However, sentiment among consumers improved, bolstered by an improved assessment of the current economic situation. Employment plans deteriorated notably in the industrial and construction sectors, but remained largely unchanged elsewhere.
Looking at the individual countries, economic sentiment deteriorated in 10 countries, including major-player Germany.