The economic sentiment indicator for the Euro Area fell for a 14th consecutive month to 106.1 in February 2019 from a revised 106.3 in the previous month, slightly above market expectations of 106. It was the lowest reading since November 2016 mainly due to a steep deterioration in industry sentiment (-0.4 vs 0.6 in January). In addition, morale worsened among constructors (6.4 vs 8.4), while sentiment improved among service providers (12.1 vs 11), consumers (-7.4 vs -7.9) and retailers (-1.6 vs -2.1). Economic Optimism Index in the Euro Area averaged 100.75 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 105.10 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 106.50 in 12 months time. In the long-term, the Euro Area Economic Sentiment Indicator is projected to trend around 108.00 in 2020, according to our econometric models.