According to the results of the European Commission’s monthly sentiment survey for the 19 countries sharing the euro, the economic sentiment among these countries have touched a 21-year-high following an accelerated pace of COVID-19 vaccinations on the back of which economies have reopened with an improved mood across all sectors especially the services and the retail sector.
The European Commission’s monthly sentiment survey for the 19 countries sharing the euro showed optimism rising to 117.9 points in June, up from 114.5 in May, beating the consensus estimate of 116.5.
Economic sentiment were more upbeat in the services sector, which incidentally is the euro zone’s biggest sector responsible for more than two thirds of gross domestic product. The sub-index rose to 17.9 points from 11.3 in May, far above expectations. Retail sentiment also saw a rise to 4.5 points from 0.5 in May.
Sentiment in Germany hit an all-time high and improved in the six largest EU countries, except Spain, where it slightly declined.
The optimism translated into manufacturing industry’s selling price expectations rising to 36.0 points in June from 29.9 in May, the highest reading in records stretching back to 1985.
Consumers also began to expect higher inflation over the next 12 months, with the reading going up to a 13-month high of 27.1.