Economic sentiment in EU falls 0.7 percent in October
Date
10/31/2024 8:03:28 AM
(MENAFN) The European Union's economic sentiment index experienced a decline of 0.7 points in October, dropping to a total of 96, primarily due to decreasing confidence within the industrial sector. According to survey results published by the European Commission on Wednesday, this downturn in sentiment reflects growing concerns among businesses in key industries. However, the overall decline was somewhat mitigated by modest confidence gains in retail trade, construction, and among consumers, while confidence levels in the services sector remained stable.
Spain reported the most significant drop in economic sentiment, plummeting by 4.8 points, followed closely by France with a decline of 4.7 points. Other notable decreases were observed in Poland and the Netherlands, with declines of 3.6 and 2.3 points, respectively. In contrast, Germany bucked the trend, recording an increase in economic sentiment of 0.8 points, indicating a more positive outlook among German businesses compared to their counterparts in other EU countries.
The survey results highlighted that confidence in the industrial sector fell by 1.8 points in October. In contrast, confidence within the services sector showed stability with a slight increase of 0.1 points. Consumer confidence also saw a modest rise of 0.5 points, driven by improved perceptions of household financial situations, although intentions among households to make major purchases remained unchanged. On the other hand, retail trade confidence experienced an uptick of 0.9 points, while construction confidence increased by 0.7 points.
Employment expectations among businesses remained steady, with a slight increase of 0.1 points, maintaining its long-term average. The Commission's findings noted that managers in the construction and retail sectors expressed optimism regarding hiring plans. However, industry and services managers did not share this positive outlook, indicating a potential divergence in employment trends across different sectors. The overall economic sentiment for the eurozone also fell by 0.7 points, reaching 95.6, reflecting ongoing challenges within the region's economic landscape.
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