Eurozone: Eurozone sentiment improves further
January 30, 2014
The Economic Sentiment Indicator (ESI) published by the European Commission picked up to 100.9 points in January, which was up from the 100.4 points recorded in December 2013, but below market expectations of 101.1 points. The index is now at its highest level since July 2011 and was above its long-term average of 100 points for a second consecutive month.
Services, consumers and the retail trade showed stronger economic sentiment, whereas sentiment in industry and construction deteriorated. At a country level, the largest increases were seen in Slovakia (+2.7 points) and Estonia (+2.1 points). Among the major economies in the region, sentiment improved in France (+1.1 points) and Germany (+0.7 points), while it deteriorated in Italy (-0.2 points) and Spain (-0.2 points). Malta boasted the highest confidence level in the region in January with 111.8 points, followed by Germany, with 106.7 points.
FocusEconomics Consensus Forecast panelists see private consumption contracting 0.6% in 2014, which is unchanged over last month's projection. For 2015, panelists see consumption expanding 1.0%.
Panelists expect investment to contract 1.5% in 2014, which is unchanged from last month's forecast. In 2015, panelists see investment increasing 2.4%.
Author: Armando Ciccarelli, Head of Data Solutions