Economic sentiment drops to six-month low
Economic sentiment in the Eurozone fell for a third consecutive month in March, although remains historically high. According to the European Commission (EC), the economic sentiment index (ESI) decreased from 114.2 points in February to 112.6 points in March. Despite the fall, sentiment in the Eurozone remains at a high reading considering the past two decades thanks to a robust economic recovery.
March’s fall was driven by decline in sentiment in the industry, services and retail trade sectors. In contrast, sentiment in the construction sector rose, while consumer confidence was broadly stable in March. Meanwhile, employment plans were mixed across sectors, improving in services and construction but deteriorating elsewhere.
At a country level, economic sentiment eased notably across the bulk of the economies in March, with Cyprus, Greece and Luxembourg posting the biggest declines. Belgium and Estonia were the only economies to see sentiment improve.