Eurozone: Economic sentiment falls to lowest level in over three years
September 27, 2012
The Economic Sentiment Indicator (ESI) published by the European Commission fell to 85.0 points in September, down from 86.1 points in August. The reading, which marked a sixth consecutive drop in the index, came in below market expectations that had sentiment remaining unchanged at August's reading. Currently, the index sits at its lowest level since August 2009 and remains well below its long-term average of 100 points, suggesting deteriorating prospects for the Eurozone economy going forward. The decline was broad based, as four out of the five main categories experienced worse results compared to the previous month, the only exception being the construction sector. At a country level, the largest declines were seen in Slovenia (-6.2 points) and Malta (-5.5 points). Among the major economies in the region, sentiment deteriorated in France (-1.6 points), Germany (-1.1 points) and Italy (-0.1 points), whereas it improved in Spain (+1.3 points). Estonia is currently the country boasting the highest confidence level in the region with 100.6 points, followed by Germany with 94.7 points.
Author: Armando Ciccarelli, Head of Data Solutions