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Eurozone Economic Sentiment Falls Further

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Eurozone Economic Sentiment Falls Further

The European Commission has caught markets by surprise this morning by spontaneously releasing a full table of economic data originally scheduled for this afternoon. The range of data just published by the Commission for April is largely disappointing.

The key Economic Sentiment indicator for the Eurozone has come in at a figure of 102, this is down from the previous months 102.5 and has surprised the markets that were anticipating a rise to approximately 103.

Likewise the Business Climate indicator has also fallen, this is currently reading at 0.27, down from March’s 0.4, again the markets were teed up for a rise in this number to at least 0.42.

Industrial Confidence has also slipped back in the Eurozone this month, today’s print is coming in at -3.6, a further fall from last months -3.3 and also moving in the opposite direction to economists expectations of a rise to the -3.0 level.

Even the Services Sentiment number is off this month, this sector has to date been performing well but today’s reading shows a fall back to 3.5 from 4.5 in March. The consensus expectation was for this number to remain at the 4.5 point.

Finally, the Consumer Confidence number is providing a glimmer of light in an otherwise poor day for sentiment readings. This is still in very negative territory at -8.6 but at least it has shown some improvement on the March reading of -9.3. The Consumer Confidence figure even managed to come in slightly ahead of the -8.7 anticipated reading.

Sentiment across the board is turning negative in the Eurozone as evidenced by today’s data from the European Commission. It is likely that the European Central Bank (ECB) has something to do with this down month, the continuing reluctance to tackle the obvious deflationary pressure mounting on the economy is casting a large shadow over the Eurozone. Action as opposed to rhetoric from the ECB at the next policy meeting may go some way to reversing this negative sentiment.

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