Euro Area economic sentiment cooled down in November, matching estimates as consumers become less optimistic and cut their inflation expectations.
- The EU’s economic sentiment indicator dropped slightly to 117.5 points in November from 118.6 in October.
- The fall in the figure was attributable to reduced optimism among consumers concerned about the fourth wave of the COVID-19 pandemic and possible new restrictions.
- Within the industry, business confidence was slightly lower at 14.1 in November, compared to 14.2 in October.
- For services, which account for a larger percentage of the eurozone economy, sentiment increased to 18.4 from 18.0. Market consensus for industry and services components both fell.
- Consumer confidence also improved in the retail industry and in construction but fell two points among consumers to -6.8 from -4.8, also lowering consumer inflation expectations to 39.3, from a record-high 40.0 in October.
Selling price expectations among EU manufacturers rose sharply to 49.0 from 42.3 in October.
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Source: European Commission