EZ ESI Beats Expectations in May

Economic Sentiment Indicator (ESI): 114.5; Prev (Apr): 110.5

Consumer: -5.1(Apr: -8.1); Industry: +11.5 (Apr: +10.9); Services: +11.3 (Apr: +2.2); Retail: -0.4 (Apr: -3.0); Construction: +4.9 (Apr: +3.0)

• The EZ ESI rose markedly again by 4.0pt to 114.5 in May, beating expectations of an uptick to just 112.0.
• The index now stands at the highest level since Jan 2018 and showed the fourth consecutive gain.
• May's increase was broad-based with every industry posting m/m gains, led by an 9.1pt uptick in the service sector with service sentiment recording the highest reading since Feb 2020.
• Retail trade confidence gained 3.4pt to a 17-month high in May and posted the first positive reading since Dec 2019, while consumer sentiment registered in line with the flash estimate showing an increase to -5.1.
• Industrial sentiment ticked up again in May by 0.6pt, marking the sixth consecutive gain and a new record high, while confidence in the construction sector ticked up 1.9pt and recorded the strongest reading since the start of the crisis.
• The ESI increased markedly in the six biggest EZ economies, led by Italy (+11.0pt) and followed by Poland (+5.1pt), France (+5.0pt), the Netherlands (+3.2pt), Germany (+2.8pt) and Spain (+2.3pt).
• The employment expectations index increased to 110.1 in May, marking the highest level since Dec 2018.

Source: European Commission