Economic sentiment and expectations plummeted both in the EU and the euro area in July, according to a European Commission report released on Thursday.
Falling for the fifth month in a row, the economic sentiment indicator (ESI) in the eurozone hit a 17-month low at 99 in July versus 103.5 in June.
The decrease was due to significant losses in industry, services, retail trade, and consumer confidence amid Russia’s war on Ukraine, surging inflation, and an energy crisis.
The eurozone/euro area (EA19) represents member states that use the bloc’s single currency – the euro – while the EU (EU27) includes all of its member countries.
Sentiment in industry fell from 7 to 3.5, in services from 14.1 to 10.7, and in retailers from -5.2 to -6.8. Consumer confidence in the euro area this July declined to a record low of -27.
The economic sentiment indicator in the EU ticked down by 4.2 points month-on-month to 97.6 in July due to deterioration in all sectors, with consumer confidence hitting an all-time low of -27.3.
The employment expectations indicator dropped 3.6 points to 106.6 in the EU and 3.2 points to 107.0 in the euro area.
Source: Anadolu Agency