Eurozone: Economic sentiment jumps to highest level in nearly five years
January 7, 2016
Following a stabilization in November, economic sentiment in the Eurozone ended the year on very high note. According to the European Commission (EC), the economic sentiment index (ESI) rose from 106.1 in November to 106.8 in December. The reading also overshot the 106.0 the markets had expected and marked the highest level since April 2011.
Looking at the sectors of the economy, economic sentiment in industry and services rose notably, while construction saw a mild improvement. Conversely, sentiment moderated among retail trade. Moreover, economic sentiment among consumers continued to rise toward the end of year.
At a country level, an increase in economic sentiment was notable in Austria (+3.1 points), Luxembourg (+1.2 points) and Belgium (+0.9 points). Among the four major Eurozone economies, sentiment was unchanged over the previous month in Germany, while it fell slightly in France (-0.1 points). In Italy, sentiment rose in December (+0.4 points), and it jumped in Spain (+3.4 points).
Author: Ricardo Aceves, Senior Economist