Eurozone: Economic sentiment falls to lowest level in three years
August 30, 2012
The Economic Sentiment Indicator (ESI) published by the European Commission fell to 86.1 points in August, down from 87.9 points in July. The reading, which marked a fifth consecutive drop in the index, came in below market expectations that had sentiment falling to 87.6 points. 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 driven by worse results in all five main categories, with the largest drop experienced in the construction sector. At a country level, the largest declines were seen in Spain (-4.9 points) and Austria (-3.5 points). Among the other major economies in the region, sentiment deteriorated in Italy (-2.4 points) and Germany (-1.0 points), whereas it improved in France (+0.4 points). Estonia is currently the country boasting the highest confidence level in the region with 102.3 points, followed by Malta with 98.6 points.
Author: Armando Ciccarelli, Head of Data Solutions