Eurozone: Economic sentiment rises to multi-year high in April

Economic sentiment in the Eurozone improved to the best result since August 2007 in April, according to the European Commission (EC). The economic sentiment index (ESI) rose to 109.6 points from March’s 108.0. The result overshot market analysts’ expectations of a slight rise to 108.1 points. Despite a number of ongoing political uncertainties, economic sentiment rests at a high level in the Euro area.

Looking at the sectors of the economy, economic sentiment improved across the board, highlighted by the rise to a multi-year high in the manufacturing sector. Consumer confidence strengthened amid more positive views regarding the future employment situation.

At a country level, sentiment improved in almost all countries including France, Germany, Italy and Spain. In contrast, sentiment deteriorated in Cyprus and Slovenia.

FocusEconomics Consensus Forecast panelists see private consumption growing 1.5% in 2017, which is unchanged from last month’s projection. For 2018, panelists see consumption expanding 1.4%. Panelists expect investment to grow 2.5% in 2017, which is unchanged from last month’s forecast. In 2018, panelists see investment increasing 2.7%.