EZ ESI Beats Expectations in March

Economic Sentiment Indicator (ESI): 101.0; Prev (Feb): 93.4

Consumer: -10.8(Feb: -14.8); Industry: +2.0 (Feb: -3.1); Services: -9.3 (Feb: -17.0); Retail: -12.2 (Feb: -19.1); Construction: -2.7 (Feb: -7.5)

• The EZ ESI jumped to 101.0 in Mar, surpassing market expectations looking for an uptick to 96.
• The index rose 7.6pt in Mar to its highest level since Feb 2020.
• Mar's increase was broad-based with every industry recording monthly gains, led by service sector sentiment which gained 7.7pt and registered at a 1-year high.
• Retail trade confidence rose 6.9pt to -12.2, while consumer confidence increased 4pt to -10.8, confirming the flash result.
• Industrial sentiment rebounded markedly in recent months, as business activity in the indstrial sector is less affected by the lockdowns.
• The index ticked up 5.1pt to 2.0 in Mar, the highest level since Dec 2018.
• Among the largest EZ economies, Germany surpassed its peers, showing the largest gain of its ESI (+7.9pt) and registering above the long-term average.
• Increases in other major countries were significant as well: Spain (+6.2pt), France (+5.4), Italy (+4.9), the Netherlands (+4.4).
• The employment expectations index increased to 97.7 in Mar, marking the highest level since the beginning of the pandemic.

Source: European Commission