Eurozone: Eurozone sentiment soars to highest levels in 17 months
August 30, 2013
Economic sentiment reached its highest level since March of last year. The Economic Sentiment Indicator (ESI) published by the European Commission picked up to 95.2 points in August from the 92.5 points recorded in July. The result came in above market expectations of 93.8 points and marked the third consecutive improvement in the index. As a result of the increase, the index is moving closer its long-term average of 100 points.
Stronger results in economic sentiment over the previous month were recorded in all of the main sectors except for construction. At a country level, the largest increases were seen in Netherlands (+5.2 points) and Austria (+3.9 points). Sentiment rose in all the major economies in the region as well. Germany recorded the strongest improvement (+3.3 points), followed by Italy (+2.0 points), France (+1.6 points) and Spain (+0.8 points). Germany boasted the highest confidence level in the region in August with 103.8 points. Malta fell from first to second place with 103.0 points as a result of a 3.3-point drop.
FocusEconomics Consensus Forecast panellists see private consumption contracting 0.6% in 2013, which is up 0.1 percentage points over last month's projection. For 2014, panellists see consumption expanding 0.5%
Panellists expect investment to contract 3.5% in 2013, which is down 0.1 percentage points from last month's forecast. In 2014, panellists see investment rising 1.3%.
Author: Armando Ciccarelli, Head of Data Solutions