Eurozone Economic Sentiment Strongest In 3 Years

(RTTNews) - Eurozone economic confidence improved to the highest level in three years in January, a monthly survey conducted by the European Commission showed on Thursday. The economic confidence index advanced to 99.4 in January from 97.2 in the previous month. This was the highest score since January 2023 and well above economists' forecast of 97.0.

The marked upturn in the ESI was driven by higher confidence in almost all sectors. The industrial confidence index rose to -6.8, the highest since May 2023, from -8.5 in December.

At 7.2, the services confidence index hit the strongest since January 2024, and rose from 5.8 in December.

The consumer confidence index improved to -12.4 from -13.2 in the prior month. Retailers' confidence also strengthened in January with the index rising to -5.7 from -6.6 in December.

Meanwhile, construction confidence remained unchanged in January. The corresponding index came in at -0.9.

The survey showed that economic confidence improved noticeably in all six largest EU economies, namely France, Germany, Spain, Italy, Poland and the Netherlands.

The employment expectations indicator also improved in January to 98.2, marking the highest levels in twelve months.

Selling price expectations remained broadly stable in industry, services and construction, while dropping in retail trade. Meanwhile, consumers' price expectations for the next twelve months and their perceptions of past price developments fell markedly.

Although the weakening dollar is likely to be monitored closely by the doves in the governing council of the European Central Bank, there is no need for the bank to move, ING economist Peter Vanden Houte said.