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Economic Sentiment Weakens, Price Intentions Continue to Rise

EUROZONE DATA
MNI (London)

EUROZONE OCT ECONOMIC CONFIDENCE 92.5 (FCST 92.4); SEP 93.7

EUROZONE OCT CONSUMER CONFIDENCE -27.6 (= FLASH); SEP -28.8

EUROZONE OCT EMPLOYMENT EXPECTATIONS 104.9; SEP 106.6

  • Eurozone economic sentiment slipped a further 1.1 points to 92.5 in October, the lowest since November 2020. Modest improvements in consumer and retail confidence halted a more substantial slide.
  • Industrial order books continued to fall, despite outlooks improving. Q3 capacity utilisation decreased by 0.5 points compared to Q2 levels, yet remains 0.5 points above the long-run average.
  • Services confidence saw a steeper decline as demand and outlooks weakened. The service industry is preparing for further slowdown in activity as the cost of living climbs.
  • Selling price expectations continued to increase across most sectors, reflecting intentions to continue to pass high prices on to consumers.
  • Despite remaining above average, the 1.7-point decrease in the employment expectations index implies a second consecutive month of worsening employment plans as firms look to slow hiring into an anticipated winter recession.

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