Eurozone Economic Confidence Weakens In June

(RTTNews) - Eurozone economic sentiment weakened in June due to lower confidence in industry, construction and services, survey results from the European Commission showed on Thursday.

At 95.3 in June, the economic sentiment index fell from 96.4 in May. The index hit the lowest since last November and was also below economists' forecast of 96.0.

Industrial confidence deteriorated for the fifth consecutive month in June as managers' production expectations and their assessments of the current order books deteriorated further.

The corresponding index declined to -7.2 from -5.3 in May. The reading was also weaker than economists' forecast of -5.5.

Reflecting less optimistic views on both past and expected demand, the services sentiment index slid to 5.7 from 7.1 in the previous month.

By contrast, the consumer confidence index rose to -16.1 from -17.4 in May. The reading matched the flash estimate.

Consumers' expectations about the general economic situation were more upbeat. Moreover, consumers were more positive regarding their financial situation.

Sentiment among retailers deteriorated again in June, with the index easing to -6.0 from -5.3 in the previous month.

Retailers' assessments of their past business situation worsened and stocks were more often assessed as too large/above normal, the survey showed. Reflecting the deterioration in managers' assessment of order books and employment expectations, confidence among building contractors dropped in June. The construction confidence index fell to -2.0 from -0.3 in the previous month.

The employment expectations index advanced to 105.0 from 104.6 in the previous month. The upturn was fueled by more optimistic employment plans among retailers and service managers.