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EC Sentiment Indexes Show Consumer Inflation Expectations Uptick

EUROZONE DATA
MNI (London)

EUROZONE MAR CONSUMER CONFIDENCE -19.2 (= FLASH); FEB -19.1

EUROZONE MAR ECONOMIC CONFIDENCE 99.3 (FCST 100.0); FEB 99.6

  • On the inflation front, selling-price expectations eased, including in services and retail (albeit to a lesser degree than in industry and construction), adding evidence for a continuation of cooling PPI throughout Q1.
  • Despite this, consumer inflation expectations increased, after having continually cooled since October. This was led by substantial upticks in Dutch, French and German expectations.
  • Eurozone economic confidence edged down in March by 0.3 points to 99.3, against expectations of a small improvement. Lower industrial, retail and construction confidence largely accounted for the softer print in March, after consumer and services confidence only weakened marginally. The index has remained below the long-term average of 100 since July 2022.
  • In the euro area, services demand expectations brightened, whilst industry weakened.

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