BRUSSELS (FFN) – Economic confidence in the eurozone saw a significant improvement this month, reaching its highest level in more than a year, according to data released by the European Commission on Thursday. The improvement in economic sentiment across the monetary union was largely supported by the upcoming Summer Olympics in France, as reported by RTTNews.
The Economic Sentiment Indicator (ESI), a key measure of future economic activity in the region, increased to 96.6 points in August, up from a revised 96 points in the previous month. The August ESI reading is the highest since May 2023.
This result surpassed analysts’ expectations, who had predicted the ESI would reach 95.8 points, which was the initially reported figure for July.
The unexpected rise in the ESI to a 15-month high was mainly driven by improved sentiment among businesses. Confidence in the manufacturing sector saw a notable improvement, with the sector’s index rising to -9.7 points from -10.4 points in July. The August reading of this sub-index is the highest in five months.
Confidence also increased among businesses in the services and retail sectors. The services sector index rose from 5 points to 6.3 points, while the retail sector index improved from -9.1 points to -8.1 points.
Conversely, consumer confidence deteriorated compared to July, with the final consumer confidence index reaching -13.5 points in August, down from -13 points in July. This was worse than the preliminary estimate of -13.4 points released last week.
| Sector | July 2024 | August 2024 |
|---|---|---|
| Economic Sentiment Indicator (ESI) | 96.0 points | 96.6 points |
| Manufacturing Confidence Index | -10.4 points | -9.7 points |
| Services Confidence Index | 5.0 points | 6.3 points |
| Retail Confidence Index | -9.1 points | -8.1 points |
| Consumer Confidence Index | -13.0 points | -13.5 points |
Key Words: Eurozone, economic confidence, ESI, European Commission, manufacturing sector, services sector, consumer confidence
