Eurozone confidence falls in October to a two-year low

Eurozone confidence falls in October to a two-year low

BRUSSELS, Oct 28 – Euro zone confidence fell to its lowest level in two years in October, according to data released on Friday, as confidence in manufacturing and services declined, but there was some solace from to some opinions on future improvements and to a decrease in inflation expectations.

The European Commission’s monthly index of economic sentiment fell to 92.5 points in October from 93.6 in September, exactly in line with the average forecast by economists polled by Reuters.

Confidence slipped in manufacturing and services but picked up slightly in construction, retail and among consumers, the Commission’s data showed, the latter recovering from a record low in data dating back to 2000.

Manufacturers were more pessimistic about the order book and production trend in recent months, while taking a slightly more positive view of production expectations.

In the services sector, companies were also more negative regarding the activity of the last three months, adopting a similar view of demand for the next quarter.

Consumers made a gloomy assessment of the current situation, but were somewhat more optimistic about their view of the economy and their own financial situation for the coming year, although they did not indicate an increased willingness to make major purchases.

Inflation and sales price expectations fell for consumers and industry, although they rose for services, reassuring the European Central Bank, which raised interest rates to their highest level on Thursday since 2009.

The European Central Bank said “substantial” progress has already been made in its bid to combat a historic rise in inflation.

Melissa Galbraith
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