Economic sentiment in the eurozone worsened again in August, weighed down by high inflation and a bleak outlook.
The Commission said on Tuesday that its economic sentiment index – an overall measure of business and consumer confidence – fell to 97.6 in August from 98.9 in July, the lowest level since February 2021.
Economists polled by the Wall Street Journal had expected the index to come in at 97.9.
The deterioration in overall sentiment in August came from the deterioration in the manufacturing and services sectors, as the outlook for weaker demand looms ahead and high input costs continue to weigh on activity.
Specifically, the mood in industry worsened to 1.2 points from 3.4 while in services – the largest sector in Europe – it fell to 8.7 from 10.4 in July.
At the same time, consumer sentiment in the eurozone remained unchanged at -24.9 points as expected by the market.
The eurozone economy expanded by 0.6% quarter-on-quarter in the second quarter, but economists expect the region to slip into recession in the coming quarters as high gas prices and inflation weigh on activity.
Source: Capital
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