Eurozone: Eurozone economic sentiment rises marginally in August
August 28, 2015
The Eurozone is enjoying a period of relative calm, following the recent Greek drama. The Economic Sentiment Indicator (ESI), which is elaborated by European Commission, edged up to 104.2 from 104.0 in July. Although the increase over the previous month was nearly unperceivable, the index reached its highest level in four years. August’s result also overshot the 103.8 the markets had expected.
The increase in sentiment was pronounced in the services sector, while retailing reported a mild rise over the previous month. Conversely, the economic sentiment in the industrial sector deteriorated compared to July. Meanwhile, consumer confidence improved over the previous month.
At a country level, a decrease in economic sentiment was notable in Greece (-6.1 points), Malta (-1.9 points) and Portugal (-1.5 points). Conversely, higher readings were observed in Cyprus (+4.6 points), Belgium (+2.2 points) and Slovenia (+5.4 points). Among the four largest Eurozone economies, sentiment in Germany fell mildly over the previous month (-0.2 points), while in France it rose (+0.9 points). Meanwhile, economic sentiment in Italy decreased (-0.6 points), while in Spain it improved notably (+1.7 points).
Author: Ricardo Aceves, Senior Economist