Economic Sentiment Indicator for the EU and the Euro Area, June 2015, EC

Page created: Friday, 30 June 2017 11:14GMT | Updated: Friday, 30 June 2017 11:27GMT

Press Release:  28 June 2017 - 21 Page(s)
Euro Area  Financial services  Unemployment

Improved euro-area sentiment resulted from marked increases in confidence in the industry, retail trade and construction sectors and among consumers and, to a lesser extent, from a slight increase in confidence in the services sector. Amongst the largest euro-area economies, the ESI rose strongly in Germany (+2.4), France (+2.2) and the Netherlands (+1.6) and slightly in Spain (+0.5), while it remained unchanged in Italy (0.0).Increasing industry confidence (+1.7) was fuelled by managers’ more optimistic assessment of the current level of overall order books and healthier assessments of the stocks of finished products, while their production expectations remained virtually unchanged. Of the questions not included in the confidence indicator, both managers’ assessment of past production and their views on export order books improved markedly. The slight increase in services confidence (+0.6) resulted from managers’ brighter demand expectations and the improvement in their views on the past business situation, while their assessment of past demand remained broadly unchanged. The strong increase in consumer confidence (+2.0) reflected more positive assessments of the future general economic situation, future unemployment and consumers’ savings expectations; only the views on households’ future financial situation remained broadly stable. The marked rise in retail trade confidence (+2.4) was fuelled by more positive views on both the present and the expected business situation, while managers’ assessment of the adequacy of the volume of stocks slightly worsened. The increase in construction confidence (+2.1) was driven by upward revisions in both managers’ employment expectations and their assessment of the level of order books. Finally, the rise (+2.9) in financial services confidence (not included in the ESI) resulted from improved appraisals of past and expected demand and of the past business situation. Employment plans saw a significant upward revision in construction, while they remained broadly unchanged in industry and services and slightly worsened in the retail trade sector. Selling price expectations increased markedly in construction and slightly in services, while they remained virtually unchanged in the retail trade sector and decreased in industry. Also consumer price expectations stayed broadly flat in June.