Eurozone Wirtschafts-Optimismus-Index

The economic sentiment indicator (ESI) in the Euro Area edged lower to 95.6 in October of 2024 from the upwardly revised 96.3 in the previous month, the lowest since February and missing market expectations that it would hold at 96.3. The decline was largely due to increased pessimism in industry (-13 vs -11 in September), the most in over two years, amid declines in both production and order book levels. In the meantime, the survey pointed to a rebound in consumer inflation expectations (13.3 vs 11), rebounding to its highest since February, potentially jeopardizing the progress in disinflation from the ECB’s tightening cycle. On the other hand, positive trends were picked up by stronger-than-expected results for the services sector (7.1 vs 7.1).