Euro Area Economic Sentiment IndicatorFebruary 2023 Data - 1985-2022 Historical

The economic sentiment indicator in the Euro Area edged down to 99.7 in February of 2023, well below market forecast of 101, compared to a downwardly revised 99.8 in January, which was the highest in seven months. Sentiment weakened among manufacturers (0.5 vs 1.2 in January) and service providers (9.5 vs 10.4) but improved among traders (-0.1 vs -0.7), consumers (-19 vs -20.7) and constructors (1.8 vs 1.4). On the price front, the consumer inflation expectations index fell slightly to 17.7, the lowest in near two years, from an upwardly revised 17.8 while the gauge for selling price expectations among manufacturers decreased to 23.8, also the lowest since the first half of 2021. Meanwhile, there was a setback in employment expectations (109.4 vs 109.7) mainly due to a marked deterioration of employment plans of managers in industry and services. Still, the Economic Uncertainty Indicator declined to 23.3 from 26.2.

The economic sentiment indicator in the Euro Area rose by 2.8 points from a month earlier to 99.9 in January 2023, the highest level since June and well above market expectations of 97.0. Sentiment improved for a third consecutive month amid easing inflation and an improved outlook, and despite fears of a shallow recession in the region due in part to rising interest rates. There were improvements in morale among manufacturers (1.3 vs -0.6 in December), service providers (10.7 vs 7.7), consumers (-20.9 vs -22.1) and traders (-0.8 vs -2.7). On the other hand, confidence among constructors deteriorated (1.3 vs 3.6). On the price front, the inflation expectations index dropped to a two-year low of 17.7, while the gauge for selling price expectations among manufacturers decreased to 31.9, the lowest since May 2021. Amongst the largest EA economies, the ESI increased markedly in France (+4.4), Spain (+2.7), Germany (+2.5), Italy (+1.7) and, to a lesser extent, the Netherlands (+0.5).

The economic sentiment indicator in the Euro Area rose for a second straight month to 95.8 in December 2022, the highest level in four months and comfortably above market expectations of 94.7. Still, it remained in negative territory and not far from October's two-year low, as households and companies were concerned about a looming economic recession, rising borrowing costs and high inflation. There were slight improvements in morale among all sectors: manufacturers (-1.5 vs -1.9 in November); service providers (6.3 vs 3.1); consumers (-22.2 vs -23.9); traders (-3.6 vs -6.6); and constructors (3.8 vs 2.8). On the price front, the inflation expectations index dropped to 23.7 from a revised 29.9 a month earlier, while the gauge for selling price expectations among manufacturers decreased to 38.4 from 40.4. Amongst the largest EA economies, the ESI increased in Germany (+2.0), Spain (+1.9), the Netherlands (+1.5) and Italy (+0.9), while it eased again in France (-1.3).