Eurozone: Eurozone sentiment picks up to highest level in more than one year
June 27, 2013
The Economic Sentiment Indicator (ESI) published by the European Commission picked up to 91.3 points in June from the 89.5 points recorded in May, reaching the highest level since May last year. The result came in above market expectations of 90.3 points and marked a second consecutive improvement in the index. Nevertheless, despite the June 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 services. At a country level, the largest increases were seen in Spain (+2.5 points) and Slovenia (+1.8 points). Sentiment rose in all the remaining major economies in the region as well, with Italy recording the strongest improvement (+1.7 points), followed by France (+1.3 points) and Germany (+1.1 points). Malta is currently the country boasting the highest confidence level in the region with 105.2 points, followed by Estonia with 100.5 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