September 27, 2024 10:23 GMT
EUROZONE DATA: Economic Sentiment Index Weaker Than Expected In September
EUROZONE DATA
The European Commission’s September sentiment survey won’t stand in the way of market pricing for a more aggressive pace of ECB rate cuts. The Economic Sentiment Index (ESI) was 96.2, below consensus and last month’s 96.5 and the long-run average of 100.
- The indicator has essentially flatlined through this year, peaking at 96.5 last month and troughing at 95.5 in February.
- Industrial sentiment fell by 1 point to -10.9, its lowest since July 2020. This follows weakness in the September flash manufacturing PMI.
- Services sentiment remains the only major sub-component in expansionary territory, rising 0.3 points to 6.7.
- Expected retail and services prices eased in September, the former to its lowest since March 2021. This is likely a function of weak household demand and lower corporate pricing power across the region.
- The expected employment indicator was little changed at 99.5, with industry/retail sectors expecting lower employment and services/construction higher.
- After rising by 3.6 points in August (likely an Olympic-induced bounce), the French ESI pulled back 1.4 points to 97.2. German sentiment also fell 1.2 points, while Italy (+1.2) and Spain (+1.9) outperformed.
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