Eurozone: Economic sentiment rockets to the highest level since October 2000
November 29, 2017
Economic sentiment in the Eurozone jumped in November, recording the best result in over 17 years, according to the European Commission (EC). The economic sentiment index (ESI) increased from October’s 114.1 to 114.6, matching market analysts’ expectations. Confidence in the Eurozone has surged in the past year despite several political obstacles including the failure of German coalition talks, an independence push by Catalonia in Spain and a lack of progress on Brexit negotiations.
Higher consumer confidence pushed up economic sentiment in November, as households assessed future unemployment and savings expectations more positively than in the previous month. Confidence in the construction sector also improved, while sentiment in the manufacturing sector was broadly unchanged. Employment plans improved notably in the retail trade and industrial sectors, both recording the best readings in 10 years—a good sign for the region’s labor market.
At a country level, economic sentiment rose strongly in Belgium, France and Malta. Major-players Italy and Spain also saw higher sentiment in November. Germany, however, saw sentiment wane slightly from October’s reading.