Eurozone: Eurozone sentiment picks up in May
May 29, 2013
The Economic Sentiment Indicator (ESI) published by the European Commission picked up to 89.4 points in May from the 88.6 points recorded in April. The result was in line with market expectations and marked the first improvement in three months. Despite the May rise, the index remains below its long-term average of 100 points.
The advance was broad-based, with four out of the five main sectors reporting stronger results compared to the previous month, with the only exception being construction. At a country level, the largest increases were seen in Cyprus (+10.7 points) and Greece (+4.6 points). Sentiment rose in all the four major economies in the region, with Italy recording the strongest improvement (+1.5 points), followed by France (+0.9 points), Germany (+0.6 points) and Spain (+0.1 points). Malta is currently the country boasting the highest confidence level in the region with 106.6 points, followed by Estonia with 102.0 points.
FocusEconomics Consensus Forecast panellists see private consumption contracting 0.4% in 2013, which is down 0.1 percentage points over last month's projection. For 2014, panellists see consumption expanding 0.6%
Panellists expect investment to contract 1.4% in 2013, which is down 0.1 percentage points from last month's forecast. In 2014, panellists see investment rising 1.8%.
Author: Armando Ciccarelli, Head of Data Solutions