ZURICH (MaceNews) – Economic sentiment in the Euro-area rose sharply in March and is above it’s long-term average for the first time since the COVID-19 outbreak began, the European Commission said in its latest report Tuesday
The Economic Sentiment Indicator (ESI) rose 7.6 points in March to 101.0, exceeding the median forecast of 96.0 in an Econoday survey of economists. The Commission noted the increase “was driven by improving confidence in all surveyed business sectors and among consumers.”
Moreover, “the increases were of a magnitude not seen since last summer’s steep recovery following the first phase of the pandemic,” the report said.
Consumer confidence also improved, rising to -10.8 and matching the Econoday median, driven by an improved outlook for the future financial situation and intentions to make major purchases.
- Industrial confidence: Fourth consecutive monthly increase. “The assessment of stocks is actually approaching historical scarcity levels. Of the questions not entering the confidence indicator, both managers’ views on export order books and their appraisals of past production improved.”
- Services confidence: “The first sharp pick-up since September last year, driven by managers’ much more optimistic demand expectations and, to a lesser extent, more positive views on the past business situation and past demand.”
- Retail trade confidence: “Marked improvements” in all indicator components.
- Construction confidence: “brightened thanks to managers’ significantly improved employment expectations and appraisals of the level of order books.”
Employment expectations were also higher, rising 6.1 points to 97.7 in March, as all sectors were more optimistic, particularly in industry where they are now above the pre-crisis level seen in February of 2020, the Commission said.
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