Eurozone Economic Sentiment Indicator dropped -1.9 to 103.3 in June, below expectation of 104.7. The deterioration was driven by lower confidence in industrial (-2.7 to -5.6) and services (-1.1 to 11.0). The fall in industrial confidence was largest in eight years. Also, it’s below long-term average for the first time since 2013. On the other hand, Confidence improved in retail trade (+1 to 0.1) and construction (+3.6 to 7.7).
Also, the ESI decreased in all of the largest euro-area economies, most so in Germany (-2.9), followed by Italy, the Netherlands (both -1.5), France (-1.0) and Spain (-0.6).
Business Climate Indicator dropped -0.13 to 0.17, below expectation of 0.28. Managers’ production expectations, as well as their views on overall and export order books and the level of stocks deteriorated. Only the assessments of past production improved.
