Europe's economic sentiment rises sharply in May

By Tuba Sahin

ANKARA (AA) - Economic confidence rose sharply in both the European Union and eurozone in May on a monthly basis, the European Commission said on Friday.

The Economic Sentiment Indicator (ESI) gained 4 points in both the EU27 and eurozone this month, a commission statement said.

The eurozone/euro area or the EA19 represents member states that use the single currency – euro – while the EU27 includes all member countries of the bloc.

"The ESI scores markedly above its long-term average and pre-pandemic level, close to its December 2017 peak," the statement noted.

The rise was driven by improving confidence in consumers and all sectors, especially services.

Services confidence posted the third consecutive significant improvement by 8.8 points, exceeding its long-term average for the first time since March last year.

EU's six largest economies saw a strong rise, mostly so in Italy by 11.0 points, followed by Poland (5.1), France (5.0), the Netherlands (3.2), Germany (2.8) and Spain (2.3).

Employment Expectations Indicator (EEI) rose by 2.4 points in the EU and 2.9 points in the euro area, due to more optimistic employment plans in all surveyed business sectors.

Meanwhile, Turkey's economic confidence index slipped 1.3% from April to 92.6 in May, according to data from Turkish Statistical Institute on Friday.​​​​​​​