Eurozone economic sentiment rebound strengthens in June
By Frank Prenesti
Date: Monday 29 Jun 2020
(Sharecast News) - Economic sentiment in the euro zone continued to recover in June as momentum in May gained pace, according to data released by the European Commission on Monday.
Overall sentiment rose to 75.7 points in June from 67.5 in May, but still short of market expectations of a consensus reading of 80.0.
The headline was lifted by improvements in both services and manufacturing, though the balance in both remained negative.
Sentiment crashed in April to its lowest level since records began in 1985 as lockdowns were imposed and forced a majority of businesses to shutter as governments tried to stop the pandemic from spreading.
From a country-perspective, the ESI recovered in all of the largest euro-area economies, with France (+9.4), the Netherlands (+8.3), Spain, Italy (both +8.2 and Germany (+6.6) all reporting increases.
Expectations about production, future demand or plans to make purchases were key parts of the improvement. All sectors also viewed employment plans more favourably, the indicator recovering between 40 and 60% of the March and April losses.
Selling price expectations bounced back markedly in industry, services and retail trade, while remaining broadly flat in construction. Consumer price expectations, by contrast, plummeted to an extent last seen in the financial crisis.
"The rebound continues, but overall conditions are still difficult across the economy's key sectors. Across the major economies, sentiment improved significantly, but remain well below their long-run averages in all cases," said analysts at Pantheon Economics.
"Meanwhile in the details, the new orders-to-inventory ratio in manufacturing is making a sharp v-shaped recovery, but expected demand in services is still sliding, even after the lockdowns have been lifted, which is an ominous signal."
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN