Eurozone economic sentiment improves slightly in November

The European Commission (EC) announced on Thursday the Eurozone’s Economic Sentiment Indicator (ESI) rose by 0.5 points to 101.3 in November from 100.8 in October. Economists had forecast the measure would increase to 101.

The improvement in euro area sentiment resulted from increased confidence among consumers (+0.4 to -7.2 in November) and retail trade managers (+0.7 to -0.2), while confidence remained broadly unchanged in industry (+0.3 to -9.2 in November vs. economists’ forecast of -9.1) and services (+0.3 to 9.3). Only confidence in construction worsened sharply (-1.3 to 3.1 in November).

Amongst the largest euro-area economies, the ESI increased in Spain (+0.7), France and Germany (both by +0.4), while it remained virtually unchanged in Italy (-0.1) and worsened in the Netherlands (−1.0).

The report also revealed that employment plans worsened somewhat in construction and industry while remaining broadly unchanged in services and retail trade. Meanwhile, consumers’ unemployment expectations improved a little. Selling price expectations declined marginally in industry and services while remaining broadly stable in retail trade and edging up in construction. Consumer price expectations dropped in November.