Eurozone economic confidence improved for the sixth consecutive month in October to the strongest level since mid-2011, driven by industrial and consumer sentiment, survey results from the European Commission showed Wednesday.
The economic sentiment index rose more-than-expected to 97.8 from 96.9 in September, exceeding consensus score of 97.2.
Industrial sentiment improved to -4.8 from -6.6 a month ago. All the three components namely managers’ production expectations, their assessment of the current level of overall order books and, the assessment of the stocks of finished products increased from the previous month.
Continuing the upward trend since December 2012, consumer confidence improved slightly in October. The corresponding index came in at -14.5, in line with the flash estimate, but up from -14.9 in September. The latest score is the highest since July 2011.
By contrast, confidence weakened in services, retail trade and construction. Resulting from worsened assessments of the past business situation and demand expectations, services confidence declined to -3.7 from -3.2.
Due to a drop in managers’ business expectations, retail trade confidence fell to -7.8 from -6.9 a month ago.
Confidence in the construction sector eased to -29.6 from -28.8 in September, resulting from managers’ markedly worsened assessment of order books.
Another survey data today showed that business confidence in the euro area continued the upward trend that started in May 2013. The reading improved by 0.18 points to -0.01, the highest since September 2011. It was forecast to remain at -0.19.
The assessments of past production, the level of overall order books and production expectations improved markedly. Also, the level of export order books and the stocks of finished products were appraised more positively.
Looking ahead, IHS Global Insight’s Chief European Economist Howard Archer said the hope for the Eurozone is that current rising confidence will encourage businesses to lift their employment and investment plans, and will also encourage consumers to spend more.
Published: 2013-10-30 13:30:00 UTC+00
Eurozone Economic Confidence Strengthens For Sixth Month
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