Eurozone: Economic sentiment falls for second consecutive month, hits eight-month low in February
February 26, 2016
Economic sentiment in the Eurozone continued to fall in February, pulled down by pessimism across the board. According to the European Commission (EC), the economic sentiment index (ESI) fell from 105.1 in January to 103.8 in February. The result also undershot the 104.3 the markets had expected and marked the lowest level since June 2015.
Looking at the sectors of the economy, economic sentiment fell in industry, services and retail trade. Conversely, it rose in construction. Meanwhile, economic sentiment among consumers declined notably and for a second consecutive month in February, which is a poor harbinger for future consumer spending.
At a country level, angst was standing in the way of the region’s recovery as a decrease in economic sentiment was registered in nearly all the economies in the common-currency bloc. Only Cyprus and Slovakia eked out some positive sentiment in February.
Author: Ricardo Aceves, Senior Economist