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EZ Economic Sentiment Indicator (Aug 2020) Preview 1000BST

EUROZONE DATA
MNI (London)

Economic Sentiment Indicator (ESI): 85.0; Prev (Jul): 82.3

Manufacturing Sentiment: -12.0; Prev (Jul): -16.2

  • The EZ ESI is forecast to rise to 85 in Aug after July's 82.3.
  • The index improved over the last couple of months but still below Feb's level.
  • Service sentiment increased to -26.1 in July, up from -35.5 in June, but remains in deep negative territory despite the recent upticks.
  • Manufacturing confidence is seen improving further in August with markets pencilling in an uptick to -12.0 following July's reading of -16.2, nevertheless, the index remains well below pre-crisis levels.
  • The recently released flash PMI sends a different signal with both the services and manufacturing PMI dropping to a two-month low.
  • The reports noted that business activity continued to grow, although at a slower pace.
  • Moreover, the flash PMI estimate reported that companies continued to reduce staff numbers in August, posing a downside risk for the Employment Expectations index, which ticked up to 87.0 in July.
MNI London Bureau | +44 203-865-3814 | irene.prihoda@marketnews.com

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