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26 Feb 2015
European economic sentiment index increases again in February
FXStreet (London) - The Economic Sentiment Indicator (ESI) rose for the second month in a row in February. It increased by 0.7 points in the Eurozone (to 102.1) and by 0.4 points in the EU (to 105.1).
The positive development in both regions was attributed to more optimistic consumers.
According to the report released by the European Commission, the increase in the headline indicator for the Eurozone (+0.7) resulted from improved confidence among consumers and in retail trade, while industry, services and construction confidence remained broadly stable. Amongst the largest Eurozone economies, the ESI brightened in Italy (+2.4), France (+2.0) and Spain (+0.8), while it declined slightly in Germany (-0.5) and the Netherlands (-0.5).
The EC reported that the broadly flat development in industry confidence (+0.1) was the result of managers' more positive assessment of the stocks of finished products which compensated for a downward revision of their production expectations; their assessment of the current level of overall order books remained broadly unchanged. Of the questions not included in the confidence indicator, the assessment of export order books remained broadly stable, while views on past production worsened. Services confidence remained broadly stable (-0.3), reflecting managers' worsened appraisal of past demand which outweighed brighter demand expectations; their assessment of the past business situation stayed broadly unchanged.
Consumer confidence brightened markedly (+1.8) thanks to consumers' more positive assessment of the future general economic situation, future unemployment and, to a lesser extent, their financial situation; by contrast, their views on future savings remained virtually unchanged. The rise in retail trade confidence (+1.5) reflected managers' more positive views on both the present and the expected business situation; also their appraisal of the adequacy of the volume of stocks improved slightly. Construction confidence stayed unchanged (0.0) as the result of the downward revision of managers' employment expectations and their improved assessment of the level of order books.
According to the EC report, the surge (+3.9) in financial services confidence (not included in the ESI) was due to managers' more positive views on past demand and, especially, the past business situation, while their demand expectations were revised slightly downwards.
Employment plans saw a significant upward revision in retail trade and smaller increases in services and industry, while they deteriorated slightly in construction. Selling price expectations decreased in construction but rose markedly in retail trade and services; also the industry sector booked a smaller increase. In line with these developments, consumer price expectations picked up in February.
The positive development in both regions was attributed to more optimistic consumers.
According to the report released by the European Commission, the increase in the headline indicator for the Eurozone (+0.7) resulted from improved confidence among consumers and in retail trade, while industry, services and construction confidence remained broadly stable. Amongst the largest Eurozone economies, the ESI brightened in Italy (+2.4), France (+2.0) and Spain (+0.8), while it declined slightly in Germany (-0.5) and the Netherlands (-0.5).
The EC reported that the broadly flat development in industry confidence (+0.1) was the result of managers' more positive assessment of the stocks of finished products which compensated for a downward revision of their production expectations; their assessment of the current level of overall order books remained broadly unchanged. Of the questions not included in the confidence indicator, the assessment of export order books remained broadly stable, while views on past production worsened. Services confidence remained broadly stable (-0.3), reflecting managers' worsened appraisal of past demand which outweighed brighter demand expectations; their assessment of the past business situation stayed broadly unchanged.
Consumer confidence brightened markedly (+1.8) thanks to consumers' more positive assessment of the future general economic situation, future unemployment and, to a lesser extent, their financial situation; by contrast, their views on future savings remained virtually unchanged. The rise in retail trade confidence (+1.5) reflected managers' more positive views on both the present and the expected business situation; also their appraisal of the adequacy of the volume of stocks improved slightly. Construction confidence stayed unchanged (0.0) as the result of the downward revision of managers' employment expectations and their improved assessment of the level of order books.
According to the EC report, the surge (+3.9) in financial services confidence (not included in the ESI) was due to managers' more positive views on past demand and, especially, the past business situation, while their demand expectations were revised slightly downwards.
Employment plans saw a significant upward revision in retail trade and smaller increases in services and industry, while they deteriorated slightly in construction. Selling price expectations decreased in construction but rose markedly in retail trade and services; also the industry sector booked a smaller increase. In line with these developments, consumer price expectations picked up in February.