Eurozone economic sentiment moderated from a 17-year high in January, survey results from European Commission revealed Tuesday.
The economic confidence index dropped unexpectedly to 114.7 in January from revised 115.3 in December. The score was forecast to rise to 116.2.
The softening of sentiment resulted from markedly lower confidence in services and retail trade, while confidence in industry remained stable.
The industrial confidence held steady at 8.8. The flat development of industry confidence resulted from managers’ more optimistic views on the current level of overall order books, being counterbalanced by their worsening assessment of stocks of finished products.
The services sentiment index slid to 16.7 from 18.0 a month ago. The decline was driven by managers’ more pessimistic demand expectations.
Meanwhile, the consumer sentiment index rose to 1.3 from 0.5 in December. The score came in line with expectations.
The retail trade sentiment index came in at 5.0 in January versus 6.0 in the previous month.
Lower retail trade confidence was the result of retailers’ more positive views on the expected business situation being more than offset by their markedly worsened assessment of the present business situation and the adequacy of the volume of stocks.
Another report from EU showed that business confidence weakened in January from its highest level registered since 1985.
The business confidence index fell to 1.54 in January from 1.60 in December.
Managers’ appraisals of overall order books and export order books improved in December, while their assessment of stocks of finished products and past production worsened.
The material has been provided by InstaForex Company – www.instaforex.com
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