Financial News: Eurozone Economic Sentiment Deteriorates Sharply

Eurozone Economic Sentiment Deteriorates Sharply

01/08/2025 - 07:36:00 (RTTNews)

(RTTNews) - Euro area economic confidence deteriorated to the lowest in more than a year in December as the improvement in services sentiment was offset by weaker morale in industry, construction and among consumers.

The economic sentiment index dropped more-than-expected to 93.7 in December from 95.6 in the previous month, survey data from the European Commission showed Wednesday.

A similar lower score was last reported in September 2023. Economists had forecast a moderate fall to 95.6.

The industrial confidence index plunged to -14.1 from -11.4 in November. This was the lowest since July 2020. Meanwhile, the services confidence index rose to 5.9 from 5.3 a month ago. The consumer sentiment index slid to -14.5 in December from -13.8 in the previous month. The reading matched the flash estimate.

Confidence among contractors also deteriorated in December with the index easing to -5.2 from -4.9.

At the same time, retailers' confidence remained broadly unchanged. The corresponding indicator registered -4.4 compared to -4.3 in November.

The survey showed that the employment expectations indicator declined to the weakest level since February 2021. The index registered 97.3 in December compared to 98.7 in November.

Selling price expectations increased across all sectors in December. The increase was significant in services and construction, and moderate in retail trade and industry, the survey showed.

Capital Economics' economist Elias Hilmer said the survey is broadly consistent with the euro area GDP stagnating in the fourth quarter. The survey suggested that inflationary pressures remained sticky. Despite the weakness of economic activity, the survey will add to ECB policymakers' concerns about the strength of domestic price pressures, the economist added.

Official data released on Wednesday showed that the decline in producer prices moderated in November amid a slowdown in the fall of energy costs. Producer prices registered an annual fall of 1.2 percent after a 3.3 percent decrease in October. Further, this was the weakest drop since May 2023.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Czech Industrial Output Falls 2.7% In November (54 min(s), 07 sec(s) ago)
(RTTNews) - The Czech Republic's industrial production decreased for the second straight month ...Full Story»

UK Job Market Weakens In December (58 min(s), 07 sec(s) ago)
(RTTNews) - UK permanent placements as well as vacancies declined at faster rates in December as c ...Full Story»

Taiwan Trade Surplus Shrinks In December (01 hr(s), 07 min(s), 07 sec(s) ago)
(RTTNews) - Taiwan's foreign trade surplus decreased notably in December as imports grew much ...Full Story»

Lithuania Inflation Rises To 14-Month High, Trade Deficit Narrows (01 hr(s), 29 min(s), 07 sec(s) ago)
(RTTNews) - Lithuania's consumer price inflation rose further in December to the highest level ...Full Story»

German Exports Rebound; Imports Fall Unexpectedly (02 hr(s), 12 min(s), 07 sec(s) ago)
(RTTNews) - Germany's exports rebounded notably in November and imports declined unexpectedly, ...Full Story»

German Industrial Output Rebounds In November (02 hr(s), 34 min(s), 07 sec(s) ago)
(RTTNews) - Germany's industrial production rebounded in November, provisional data from Desta ...Full Story»

European Economic News Preview: Germany Industrial Output, Trade Data Due (03 hr(s), 20 min(s), 07 sec(s) ago)
(RTTNews) - Industrial production and foreign trade from Germany and retail sales from the euro ar ...Full Story»

Estonia Trade Gap Narrows In November (03 hr(s), 20 min(s), 07 sec(s) ago)
(RTTNews) - Estonia's trade deficit in November decreased from the same month last year, as ex ...Full Story»