The economic sentiment indicator for the Euro Area slumped to 103.3 in June 2019 from a revised 105.2 in the previous month and well below market expectations of 104.6. That was the lowest reading since August 2016, as sentiment among manufacturers plunged 2.7 points to -5.6, the largest drop in about eight years. In addition, confidence deteriorated among service providers (11.0 vs 12.1 in May) and consumers (-7.2 vs -6.5), while an improvement was seen in sentiment among retailers (0.1 vs -0.9) and constructors (7.7 vs 4.1). The largest falls in confidence were recorded in Germany and Italy, followed by France, the Netherlands and Spain. Economic Optimism Index in the Euro Area averaged 100.80 from 1985 until 2019, reaching an all time high of 118.10 in May of 2000 and a record low of 68.30 in March of 2009.
Economic Optimism Index in Euro Area is expected to be 104.90 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Economic Optimism Index in Euro Area to stand at 104.30 in 12 months time. In the long-term, the Euro Area Economic Sentiment Indicator is projected to trend around 104.00 in 2020, according to our econometric models.