Eurozone economic sentiment down as industry confidence weakens

(Sharecast News) - Economic sentiment across the eurozone weakened as expected in June, according to data out on Friday from the European Commission, with falling industry confidence weighing on the overall mood. The EC's Economic Sentiment Indicator for this month showed a 0.8-point decline to 94.0, compared with the consensus forecast of an improvement to 95.1.

This was close to its lowest levels seen over the past four years and comfortably below the long-term average of 100.

"The decline in the ESI was primarily driven by reduced confidence in the industry sector, with retail trade contributing to the downturn to a lesser degree," the Commission said.



The industry confidence gauge fell 1.1 points, with all three components (managers' assessments of the current level of order books, stocks of finished products and production expectations) all weakening over the month.

Confidence in the services sector and among consumers remained broadly stable, rising 0.2 points and falling 0.3 points respectively. Among consumers, while they expressed less pessimism about the future economic outlook, their intentions to make major purchases over the next 12 months dropped, while perceptions of expected household finances deteriorated.