Economic Sentiment Indicator’s upward trend

October 2010 

 

Euro Zone - surprising optimism about the economy

In the euro zone business climate unexpectedly improved in July. The European Commission said ...

 

 

In the euro zone business climate unexpectedly improved in July. The European Commission said its economic sentiment indicator rose from 99 to 101.3 points. We expected a stable level. The increase was driven by strong figures in Germany, the euro zone's biggest economy, where economic sentiment rose 4 points. The figure also increased in France (+2.6) and Poland (+1.9) but fell in Spain (-2.2). 

 

The economic sentiment indicator is composed of the industrial, services, retail trade, construction and consumer confidence indicators.

 

According to the European Commission the improvement in the indicator suggests that the economic activity in industry will continue to recover in the coming months but there is still long way to return to the pre-crisis levels.

 

 

Inflation at highest level

 

Inflation in the 16 countries that use the euro rose to 1.7% in July, logging the highest level rate since November 2008 (2.1%). In June, the inflation rate was 1.4%.

 

According to the European Central Bank (ECB) the price stability is possible if prices rise by just under 2 per cent per year in the medium term.

 

 

Source: EurActiv.de