Eurozone: Economic sentiment rests at March's six-month low
April 27, 2018
Economic sentiment in the Eurozone was steady in April, ending a streak of three consecutive falls. According to the European Commission (EC), the economic sentiment index (ESI) was unchanged at March’s 112.7 points in April. March’s result had marked a six-month low. However, overall, sentiment in the Eurozone remains at a high reading considering the past two decades thanks to a robust economic recovery.
Declines in sentiment in the retail trade, services and construction sectors were balanced out by rising sentiment in the manufacturing sector and among consumers in April, keeping the headline index unchanged. Meanwhile, employment plans were mixed across sectors, falling in the industrial and construction sectors, but remaining broadly steady in services and retail trade.
At a country level, economic sentiment fell in nine economies in April, including in Italy, the Netherlands and Portugal. However, the declines were offset by rising sentiment in seven economies, including major-players France and Spain. Sentiment was unchanged in Germany.
Eurozone Private Consumption Forecast
FocusEconomics Consensus Forecast panelists see private consumption growing 1.7% in 2018, which is unchanged from last month’s projection. For 2019, panelists see consumption expanding 1.7%. Panelists expect investment to grow 3.7% in 2018, which is unchanged from last month’s forecast. In 2019, panelists see investment increasing 3.4%.