2024-08-30 17:48:01
Economic confidence in the eurozone rose to a 15-month high in August, while the hosting of the Paris Olympics boosted economic sentiment in France. This is according to the latest study by the European Commission, published today on the institution’s website, Reuters reported.
The Eurozone economic confidence index rose to 96.6 in August from 96 in the previous month. This is the highest result of the indicator since May 2023.
In the current month, economic confidence was expected to remain unchanged at the initially calculated value for July of 95.8 points.
Confidence in industry, services and retail is improving. Consumer and construction confidence remains broadly stable.
The index of economic confidence in industry rose to a five-month high – to minus 9.7 points in August from minus 10.4 points in the previous month. With a reading of 6.3 points, the index of confidence in services rose from 5 points recorded in July and was above the forecast for growth to just 5.2 points.
The retail confidence index rose to minus 8.1 points in August from minus 9.1 points in the previous month.
Consumer confidence reported a drop to minus 13.5 points, after a reading of minus 13 points in July, writes BTA.
ING economist Bert Collin explained that the French optimism surrounding the Olympic Games “clouds” the economic picture in the Eurozone. The second half of the year is shaping up to be one of slow growth and still high inflation, the economist added.
There is nothing in today’s data to change the view that the European Central Bank will cut interest rates by another 0.25 percentage points at its next meeting in mid-September, according to Capital Economics economist Andrew Cunningham.