Economic sentiment registered sharp declines in July, both in the EU (-4.2 points) and in the euro area (-4.5), accompanied by a fall in employment expectations, of -3.6 and -3, 2 points, respectively, revealed the European Commission.
In July, according to data from the General Directorate of Economic and Financial Affairs of the community executive, the the economic sentiment indicator fell to 97.6 points in the EU and to 99 in the single currency areanow standing below the long-term average (100 points for the period 2000-2021).
As for the employment expectations indicator, it fell to 106.6 in the 27 Member States as a whole and to 107.0 points in the euro area, but in this case it was still above the long-term average.
According to the community executive services, the sharp drop in the economic sentiment indicator in July is due to “significant losses in industry, services, retail and consumer confidence.”
Considering the six largest economies in the EU, the indicator suffered sharp falls in fournamely, Spain (-5.0 points), Germany (-4.9), Italy (-3.4) and Poland (-3.2), remaining relatively stable in France (-0.1 points) and in the Netherlands (+0.2).
In turn, the drop in the employment expectations indicator was driven by a deterioration in employment plans in the commerce and services sectors and, to a lesser extent, in industry.
Source: Observadora
