Financial News: Eurozone Economic Confidence Weakens In April

Eurozone Economic Confidence Weakens In April

04/29/2024 - 08:43:00 (RTTNews)

(RTTNews) - Euro area economic sentiment deteriorated further in April largely reflecting the difficulties in the industrial sector, survey data revealed on Monday. The economic confidence index dropped to 95.6 in April from 96.2 in the previous month, the European Commission said. The expected reading was 96.9. The economic sentiment index deteriorated notably in industry, and services, retail trade and construction experienced moderate falls. Only consumer confidence improved from March.

Reflecting the deterioration in the assessment of the current order book, the industrial confidence index fell to -10.5 from -8.9 in the previous month.

The services confidence indicator posted 6.0 in April, down from 6.4 a month ago.

At the same time, the retail trade confidence indicator dropped to -6.8 from -6.0 in the previous month. Likewise, the construction sentiment index eased to -6.0 from -5.6.

By contrast, at -14.7, the consumer sentiment indicator was unchanged from the flash estimate and improved from -14.9 in March.

Selling price expectations declined in services and retail trade and remained stable in industry and construction, the survey showed.

The European Commission's Economic Uncertainty Indicator decreased further. The employment expectations indicator posted 101.8, which was below March's value of 102.5.

"Today's data shows that the eurozone's economic recovery remains a stop-and-go affair, at least for the time being," ING economist Peter Vanden Houte said.

"While a June rate cut has been advocated so strongly and today's data didn't include any nasty inflation surprises, it seems all but sure to happen," the economist added.

However, the economist expects the ECB's monetary easing to proceed at a snail's pace.

Capital Economics economist Franziska Palmas said the weaker-than-expected business and consumer survey is a reminder that the euro area economy is still weak.

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