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Bert Colijn, Senior Economist at ING, notes that the Eurozone’s Economic Sentiment Indicator dropped from 109.7 to 109.5, marking its 11th consecutive fall.

Key Quotes

“This was a smaller decline than analysts had expected, as industrial sentiment improved for the first time since April. Service sector sentiment stabilised in November, after a large drop in October.”

“The reason for the decline was mainly due to consumer confidence falling since March 2017, which was largely driven by worsening expectations of unemployment in the coming year and subsequently a deterioration in household finances.”

“Contrary to the PMI released last week, industrial sentiment painted a slightly brighter picture of the manufacturing environment than in October. Confidence increased as expectations of production in the months ahead improved and production in recent months was also more positively assessed by manufacturers.”

“The economy is not showing much of a pickup from the weak third quarter.”

“Growth expectations are therefore modest for Q4 and the coming quarters, as we expect GDP growth for Q4 coming in at just 0.3% QoQ and annual growth for 2018 at 1.9%.”