Eurozone: Economic sentiment drops in April
April 26, 2012
The Economic Sentiment Indicator (ESI) published by the European Commission fell to 92.8 points in April, down from a revised 94.5 points in March (previously reported: 94.4 points). The reading marked the first drop in four months and overshot market expectations, which had sentiment easing to 94.2 points. At the current level, the index remains well below the long-term average of 100 points, suggesting deteriorating prospects for the Eurozone economy going forward. The decline was driven by worse results in four out of the five main categories, with the largest drop experienced in the services sector, followed by the industrial sector. At a country level, the largest declines were seen in Luxembourg (-11.2 points) and Slovenia (-6.4 points). Moreover, sentiment deteriorated in all the major economies in the region, with Italy marking the largest drop (-5.7 points). Business confidence dropped 1.8 points in Spain and 1.0 point in Germany, which still boasts the highest confidence level in the region (103.3 points). Finally, sentiment dropped by 0.3 points in France.
Author: Armando Ciccarelli, Head of Data Solutions