Economic sentiment in the euro zone has fallen to its lowest level in almost two years. The Economic Sentiment Indicator (ESI) fell by 1.1 points to 92.5 points in October compared to the previous month, as the European Commission announced on Friday in Brussels. Analysts had expected a drop to 92.4 points on average. The indicator thus reached its lowest level since November 2020 and is even below the long-term average. It is the eighth consecutive decline.
Sentiment clouded over again in the industrial and service sectors of the eurozone. Consumer confidence improved marginally after falling to a record low in the previous month. The indicators for retail and construction also rose somewhat.
The economy in the euro zone continues to be 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. In addition, the European Central Bank raised its key interest rates sharply again on Thursday. This is likely to have a negative impact on economic development in the future. (dpa)