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- Economic sentiment and employment expectations continue their strong recovery in the euro area
Economic sentiment and employment expectations continue their strong recovery in the euro area
According to the report from European Commission, in April 2021, the Economic Sentiment Indicator (ESI) continued its strong recovery, gaining 9.8 (EU) / 9.4 (EA) points compared to March. At 109.7 (EU) / 110.3 (EA) points, the ESI scores markedly above its long-term average and pre-pandemic level for the first time since the outbreak of COVID-19 on the continent. Also the Employment Expectations Indicator (EEI) saw a forceful increase (+9.9 points to 107.9 in the EU and +9.3 points to 107.1 in the euro area), which lifted the indicator both above its long-term average and pre-pandemic level.
In the EU, the ESI’s increase was driven by improving confidence in all surveyed business sectors (i.e. industry, services, retail trade, construction) and among consumers. The ESI rose markedly in all of the six largest EU economies, most so in Poland (+11.3), followed by the Netherlands (+10.7), Spain (+9.1), France (+8.5), Germany (+5.7) and Italy (+5.3). Thanks to the latest increases, sentiment in all six countries is above its long term average of 100.
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