Eurozone: Economic sentiment inches up in November

Economic sentiment in the Eurozone rose slightly in November, according to the European Commission (EC). The economic sentiment index (ESI) increased from 106.4 in October to 106.5, the highest reading since December 2015. The result undershot market analysts’ expectations of a larger increase to 107.0. Despite a number of political uncertainties, economic sentiment has remained resilient in the Euro area.

Looking at the sectors of the economy, economic sentiment rose in retail trade and among consumers but fell slightly in the manufacturing sector. Meanwhile, sentiment in the services sector was unchanged from October’s result.

At a country level, sentiment improved in eleven countries including France, Portugal and Spain. In contrast, sentiment deteriorated in the remaining countries including in Germany and Greece.

FocusEconomics Consensus Forecast panelists see private consumption growing 1.6% in 2016, which is unchanged from last month’s projection. For 2017, panelists see consumption expanding 1.4%, which is also unchanged from the previous month’s forecast. Panelists expect investment to grow 2.5% in 2016, which is up 0.2 percentage points from last month’s forecast. In 2017, panelists see investment increasing 2.2%, which is up 0.1 percentage points from last month’s projection.