Eurozone Sentix Investor Confidence rose to -13.4 in August, up from -18.3, beat expectation of -15.2. It’s also the fourth increase in a row, and highest since February. Current Situation index rose to -41.3, up from -49.5, highest since March. Expectations, however, dropped slightly to 19.3, down from 19.5.
Sentix said: “If one compares the development of the current situation following the financial crisis in 2009 with the recovery movement of the sentix economic indices this year, it is noticeable that the recovery of the current situation is very similar in terms of both level and timing. At that time, the expectations were also the first to rise. For a long time, the current situation values bobbed in the deep red range. It was not until summer 2009 that the economic indicators began to recover. The path in 2020 is now very similar, giving rise to the fantasy that the low point has definitely been passed and that the initiated recovery can continue.”
Bank of France: July economic activity -7% below normal levels
Bank of France said in the monthly report that economic activity is running -7% below normal levels in July. That follows -13.8% contraction in the economy in Q2.
It also noted, in July, “industrial activity continued to recover, albeit at a more subdued pace compared to June”. “Services sector activity continued to expand, but at a slower rate than previous month”. “Construction sector activity continued to grow but decelerated.”
For August, business leaders expect industry to “grow moderately”, services to “remain almost stable”, construction to “tick upwards”.