Economic sentiment ticks up in February
Sentiment in the Eurozone strengthened in February, rising to 103.5 points from January’s 102.6 points. Consequently, sentiment in the Eurozone moved further above its long-run average of 100 points, although it remained weak overall.
February’s rise came on the back of stronger confidence in the industrial and services sectors, as well as among consumers. On the flip side, sentiment in the retail trade sector and to a larger extent in the construction sector weakened. Meanwhile, employment expectations eased, due to deteriorations in employments plans in the industrial sector more than offsetting brighter employment plans in the construction sector.
Among the largest economies of the Euro Area, sentiment strengthened in Germany, France, the Netherlands and Spain, while it flatlined in Italy.
Commenting on the release, Peter Vanden Houte, Eurozone chief economist at ING, stated:
“Before getting too excited about the positive figures, we must remember the survey is conducted within the first two to three weeks of the month. The number of Covid-19 cases outside of China only started to increase significantly after 21 February. In other words, the survey was done at a time when Europe considered Covid-19 largely a Chinese problem with some minor negative effects on the rest of the world. But since then the situation has changed considerably.”