Euro area economic sentiment stable, retail improves

Economic sentiment in the European Union (EU) and euro area remained stable in November 2024, with the Economic Sentiment Indicator (ESI) at 96.5 in the EU and 95.8 in the euro area.

Confidence improved in industry and retail but fell in services and among consumers. The Employment Expectations Indicator (EEI) eased slightly, reflecting reduced optimism in construction and retail.

Industry confidence rose due to better order book and production expectations, while service sector confidence declined amid worsening demand assessments.

Consumer confidence fell, driven by pessimism about the economy and personal finances, although major purchase intentions improved. Retail trade confidence surged, and construction confidence edged up despite employment concerns.

Selling price expectations increased in retail, construction, and industry but fell in services. Consumers’ price outlooks rose notably.

Economic uncertainty slightly decreased, aided by lower concerns in industry and among consumers, though it grew in retail and construction.

The latest investment survey showed a decline in investment optimism, with more EU manufacturers expecting decreases in 2024 compared to increases. The services sector remained positive for 2024 but showed a slight dip from earlier in the year.

Attribution: European Commission

Subediting: M. S. Salama