Economic sentiment in the euro zone deteriorated more than expected in July. The Economic Sentiment Indicator (ESI) fell by 4.5 points to 99.0 points compared to the previous month, as the European Commission announced on Thursday in Brussels. Analysts had expected a drop to 102.0 points on average. The indicator fell to its lowest level since February 2021 and also below its long-term average. It’s the fifth straight decline.
Sentiment in industrial companies in the euro zone clouded over noticeably after a slight improvement in the previous month. Services, consumer and retail confidence also deteriorated. The mood in the construction industry also clouded over.
The economy in the eurozone is currently being weighed down by high energy prices and ongoing supply chain problems triggered by the war in Ukraine and tough corona policies in China. Very high inflation is weighing on consumer sentiment. (dpa)