Economic sentiment in the eurozone was much better than expected in September thanks to a rebound of confidence in industry in the biggest economies, data from the European Commission showed yesterday.
The economic sentiment index, calculated by the EU’s executive arm, rose to 104.9 in September from 103.5 in August, beating expectations of no change and moving further above the long-term average of 100.0.
Economic sentiment is an early indicator of economic activity, signaling trends in GDP growth.
Separately, the Commission’s business climate indicator, which points to the phase of the business cycle, also jumped to 0.45 in September, its highest level since October 2015.
The Commission said economic sentiment improved the most in the biggest eurozone economies — Germany, France, Italy, Spain and the Netherlands.
The rise was fueled mainly by rallying industry confidence, on managers’ sharply improved assessments of overall order books and better production expectations.
Sentiment in the services sector, which generates two-thirds of eurozone GDP, rose marginally.
© Irish Examiner Ltd. All rights reserved