Euro zone sentiment edges up in Sept, defies expectations of drop By Reuters
BRUSSELS (Reuters) – Euro zone economic sentiment edged higher in September after a fall in August, boosted by optimism among consumers and in the industry and construction sectors, while inflation expectations continued to rise among manufacturers and consumers alike.
After reaching an all-time record of 119.0 last July, the European Commission’s economic mood indicator increased to 117.8 from August.
Reuters polled economists who expected that sentiment would fall to 116.9 by September. This was mainly due the expected weakness in service and industry.
However, data from the Commission showed that sentiment in industry rose to 14.1 in August from 13.8 in august. Services however saw a decline to 15.1 in August from 16.8.
With a reading at -4.0 in August, consumers were more optimistic. The indicator in the construction industry rose to 7.5 from 5.5. This helped offset the decrease in the retail sector’s index to 1.3.
Manufacturers and consumers had higher expectations of inflation due to the economic recovery following the COVID-19 pandemic.
The 38.2 point increase in selling price expectations by manufacturers is a new record. Meanwhile, consumer inflation expectations rose from 31.1 to 33.1 in August to reach the 38.7 mark in August 2001.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is the most risky investment form. Please make sure you are fully aware of all the costs and risks involved.