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Bert Colijn, senior economist at ING, notes that the Eurozone’s economic sentiment indicator declined marginally from 106.3 to 106.1, as its economy is not out of its slow growth rut just yet.

Key Quotes

“Wrapping up the Eurozone surveys for the month, the conclusion to be drawn is that consumers and the service sector are doing better, but the manufacturing sector continues to provide a reason for concern. This was broadly reflected in the Eurozone Sentiment Indicator (ESI), as consumer, retail and services confidence improved. Industrial confidence came in weaker as order books and production expectations decreased in February.”

“The ECB governing council has been debating whether the slowdown is temporary or of a more permanent nature. While February’s surveys do justify some optimism about a cautious bounce back, the manufacturing sector problems and downside risks like Brexit and higher tariffs for the auto sector could still develop into something serious.”

“The governing council is therefore unlikely to have a unanimous verdict on the temporary versus permanent matter at the March meeting.”