Economic sentiment hits one-year low in August
Economic sentiment in the Eurozone decreased slightly in August, continuing the downward trend seen in recent months. According to the European Commission (EC), the economic sentiment index (ESI) came in at 111.6 points in August, down from 112.1 points in July. August’s result marked a one-year low. Nonetheless, sentiment in the Eurozone remains elevated in comparison to levels seen over the past two decades.
Markedly weaker confidence among consumers drove August’s deterioration. A decline in services-sector confidence was also recorded. That said, these were partially offset by gains in the construction and retail-trade sectors. Industrial-sector confidence was roughly stable from July. Employment plans were mixed; they worsened across the industrial and retail-trade sectors but improved significantly in the services and construction sectors.
Among member countries, economic sentiment decreased in fifteen economies, including Germany, France, Italy and Spain.