Euro area economic sentiment slides to nearly 2-year low in September

By Tuba Sahin

ANKARA (AA) – Economic sentiment in the euro area plummeted to an almost two-year low in September, according to a European Commission report released on Thursday.

Amid spiraling inflation and a growing energy crisis, the economic sentiment indicator (ESI) fell for the seventh consecutive month to hit 93.7 in September, versus 97.3 in August.

All sub-indexes – industry, services, retail trade, consumer, and construction – posted declines.

The eurozone consumer confidence indicator also dropped by 3.8 points to minus 28.8 in September, the lowest reading since records began in 1985.

Economic sentiment in the EU dove 3.5 points from a month ago to 92.6 in September, mainly driven by a sharp decline in the consumer sector.

Amongst the largest EU economies, the ESI fell markedly in Germany (minus 4.8), the Netherlands (minus 3.7), Italy (minus 3.7), France (minus 3.2), Poland (minus 2.4) and, to a lesser extent, Spain (minus 1.0).

Consumer confidence in the EU also ticked down by 3.5 points to a new all-time low of minus 29.9 in September.

The eurozone/euro area (EA19) represents member states that use the bloc’s single currency – the euro – while the EU (EU27) includes all of its member countries.

Led by slumps in the industry and construction sectors, the employment expectations indicator dropped 0.8 points to 106.4 in the EU and 1.2 points to 106.7 in the euro area.