In June, Eurozone economic morale decreased somewhat less than projected, as consumers and retail trade became more pessimistic, although sentiment in the industrial and services sectors recovered.
According to the European Commission’s monthly survey, economic confidence across the eurozone’s 19 member countries fell to 104.0 in June from 105.0 in May. Reuters polled economists, who projected a reading of 103.0 in June.
Sentiment in industry rose to 7.4 points from 6.5 in May, while sentiment in services, the economy’s largest sector, rose to 14.8 points from 14.1 in May. Economists anticipated both to fall.
Manufacturers were more optimistic about future output and order books, but less so about employment, and total uncertainty was higher.
The service industry was more positive about business over the last three months, but less so in the future.
Consumer confidence fell from -21.2 to -23.6, while retail trade sentiment fell from -4.2 to -5.1. Households were more pessimistic about the economy in the previous and future year, as well as their expectations for significant purchases and savings.
Sentiment in the eurozone’s five major economies fell, most notably in the Netherlands.
Consumer inflation expectations fell to 42.6 in June, down from 45.5 in May, after reaching an all-time high in March. Manufacturers’ selling price forecasts were also lower, at 50.4, compared to a record high of 59.5 in April.
(Adapted from Latestly.com)