Eurozone economic confidence deteriorates more than expected

Economic sentiment t in the Eurozone deteriorated more than in expected in February, according to data from the European Commission.

The EC’s headline economic sentiment indicator fell to 103.8 from a revised 105.1 in January.

This was below economists’ expectations for a reading of 104.4 and marked the lowest reading since June 2015. It was also the second consecutive month of decline.

The EC said the fall came on the back of deteriorating confidence among consumers in all business sectors apart from construction, while in terms of countries, the Netherlands saw a sharp drop.

Meanwhile, the EC’s business climate indicator fell by 0.2 points to 0.07, missing consensus expectations for a reading of 0.28.

All underlying components of the BCI, apart from managers' appraisal of stocks of finished products, contributed to the slip.

The worsening was most pronounced in managers' appraisal of past production, total order books as well as their production expectations.

Pantheon Macroeconomics said the indicators were poor.

“Another downside surprise from economic survey data. The headline sentiment index fell to an eight-month low, driven by weakness in both services and industrial confidence.”