Eurozone Economic Sentiment Weakens For 11th Month Yet Tops Expectations
November 29 2018 - 3:00AM
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Eurozone's economic sentiment weakened for an eleventh straight
month in November, but the pace of decline was less than expected,
helped by an improvement in morale in the industrial sector.
The economic sentiment indicator fell to 109.5, which was the
weakest reading since May 2017, when the score was 109, survey data
from the European Commission showed on Thursday. The October
reading was revised to 109.7 from 109.8. Economists had forecast a
score of 109.1 for November. Meanwhile, the industrial confidence
index rose to 3.4 from 3, which was in contrast to economists'
expectations for a steep fall to 2.5. The measure climbed for the
first time in five months. The services confidence measure was
steady at 13.3 in November, which is the lowest level since June
2017. Economists had expected the measure to drop to 13.1. The
consumer confidence index deteriorated to -3.9 from -2.7,
confirming its flash estimate released on November 22. Pessimism in
the retail trade industry lessened slightly, while optimism in the
construction sector was stable in November. A separate report from
the European Commission on Thursday that the Eurozone business
climate index rose to 1.09 in November from 1.01 in October, which
was revised from 0.96. "November's modest decline in the EC's
euro-zone Economic Sentiment Indicator (ESI) left it consistent
with solid GDP growth which will encourage the ECB to end its asset
purchases next month as planned," Capital Economics economist
Jennifer McKeown said. Eurozone growth halved to 0.2 percent in the
third quarter and the private sector growth in November was the
slowest in nearly four years. European Central Bank President Mario
Draghi said at the start of this week that a gradual slowdown in
Eurozone growth is normal and is part of it is likely temporary.
However, risks relating to protectionism, vulnerabilities in
emerging markets and financial market volatility remain prominent,
he reiterated.
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