Eurozone: Eurozone sentiment improves for sixth consecutive month
October 31, 2013
The Economic Sentiment Indicator (ESI) published by the European Commission picked up to 97.8 points in October, up from the 96.9 points recorded in September. The result came in above market expectations of 97.2 points and marked the sixth consecutive improvement in the index. The index is now at its highest level since August 2011 and is moving closer to its long-term average of 100 points as a result of October's increase.
Stronger results in economic sentiment over the previous month were recorded in both the industry and consumer sectors, whereas sentiment deteriorated in the other three categories. At a country level, the largest increases were seen in Austria (+5.2 points) and Slovakia (+4.6 points). Among the major economies in the region, sentiment improved in France (+2.6 points) and in Germany (+0.8 points), while it deteriorated in Spain (-2.2 points) and Italy (-2.0 points). Malta boasted the highest confidence level in the region in October with 107.1 points, followed by Germany, with 104.9 points.
FocusEconomics Consensus Forecast panelists see private consumption contracting 0.6% in 2013, which is up 0.1 percentage points over last month's projection. For 2014, panelists see consumption expanding 0.5%, which is also up 0.1 percentage points from last month's forecast.
Panelists expect investment to contract 3.5% in 2013, which is down 0.1 percentage points from last month's forecast. In 2014, panelists see investment rising 1.3%, which is up 0.2 percentage points from last month's projection.
Author: Armando Ciccarelli, Head of Data Solutions