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Euro zone sentiment goes down to fresh two-year minimum
In February, euro zone economic sentiment went down for an eighth month in a row hitting a fresh two-year minimum because managers in industry became more pessimistic about order books, inventories, and production expectations.
In February, euro zone economic sentiment headed south to 106.1 points from an upwardly updated 106.3 last month. That’s what the European Commission informed on Wednesday. That’s the lowest value since November 2016.
Financial analysts had hoped for a bit steeper dive to 106.0.
The poll contributes to evidence that economic prospects of the EU for the beginning of this year are muted after a mild 0.2% leap quarter-on-quarter in the third as well as fourth quarters of the previous year.
In February, sentiment in industry went down for a third month in a row hitting 0.4 points from January’s outcome of 0.6 points, which is quite below market hopes for 0.1%.
On the contrary, sentiment in services, generating about two thirds of the euro zone GDP, managed to rally to 12.1 in contrast with January’s result of 11.0 against the backdrop of hopes that it would be intact, although the past business situation turned out to be the key reason for the improvement.
The mood of customers also ascended this month up to 7.4% in contrast with January's outcome of 7.9%. Meanwhile, market sentiment in retail trade appeared to be less dismal, accounting for 1.6% versus January’s 2.1%.
Among the key countries, in the Netherlands overall economic sentiment became better, although it was lower than in Italy and France. Germany demonstrated a mild outcome, while the situation in Spain was intact.
A separate business climate indicator stood still in February sticking with 0.69, which beat the 0.60 average estimate in the Reuters survey.
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Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.