Eurozone: Eurozone sentiment drops for second consecutive month
April 29, 2013
The Economic Sentiment Indicator (ESI) published by the European Commission fell to 88.6 points in April from the 90.1 points recorded in March. The decline, which marks a second consecutive drop in the index, exceeded market expectations that had sentiment falling only to 89.3 points. With the April drop, the index moved further away from its long-term average of 100 points.
The deterioration was broad-based, as all the main sectors reported weaker results compared to the previous month. At a country level, the largest drops were seen in Cyprus, where the sentiment gauge dropped a whopping 17.6 points to 64.4 points, the lowest level on record, amid tensions related to its international bailout. Sentiment fell in three out of the four major economies in the region, with Germany recording the strongest moderation (-2.3 points), followed by France (-2.1 points) and Italy (-1.9 points). In contrast, economic sentiment rose 0.9 points in Spain. Malta is currently the country boasting the highest confidence level in the region with 105.8 points, followed by Estonia with 101.2 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