The economic mood in the eurozone deteriorated significantly in March. The Economic Sentiment Indicator (ESI) fell by 1.6 points to 96.6 points compared to the previous month, as the European Commission announced in Brussels on Monday. In February the value was significantly higher, at a revised 98.2 points. The economic indicator fell for the second month in a row.
Economists had expected sentiment to dampen due to the increased energy prices following the oil price shock caused by the Iran war. On average, they had assumed a decline to 96.7 points.
The ESI is moving further away from the long-term average of 100 points. The slowdown can be explained primarily by a significant decline in consumer confidence and retail sentiment. In industry, however, the indicator has improved slightly.
