Economic sentiment in the euro zone deteriorated more than expected in August. The Economic Sentiment Indicator (ESI) fell by 1.3 points to 97.6 points compared to the previous month, as the European Commission announced in Brussels on Tuesday. Analysts had expected a drop to 98.0 points on average. The indicator fell to its lowest level since February 2021 and remains below its long-term average. It is the third decline in a row.
Sentiment in the industrial and service companies in the euro zone clouded over again noticeably. On the other hand, consumer confidence improved. Sentiment in retail and the construction industry also brightened a little.
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. Persistently very high inflation is weighing on economic sentiment. (dpa)