Eurozone Economic Confidence Improves In October

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Eurozone economic confidence advanced unexpectedly in October, monthly data released by the European Commission showed on Thursday.

The economic confidence index rose to a three-month high of 118.6 in October from 117.8 in the previous month. The reading was forecast to 116.9.

The increase was driven by the improvement in services, construction and retail trade. Confidence in industry rose marginally, while consumer sentiment weakened on households' more negative views on their past and future financial situation.

The industrial sentiment index advanced unexpectedly to 14.2 from 14.1 a month ago. The score was forecast to fall to 12.5.

The services confidence index came in at 18.2, up from 15.2 in the previous month and the expected score of 16.5.

On the other hand, the consumer sentiment index dropped to -4.8, in line with flash reading, and down from -4.0 in September.

The retail trade sentiment indicator advanced to 2.0 from 1.4 a month ago. Likewise, the construction confidence index improved to 8.9 from 7.5 in September.

The employment expectations indicator rose 1.1 points to 114.5, reaching its highest reading since May 2018.

The survey showed that selling price expectations in all surveyed business sectors continued their steep increase observed since the beginning of the year and reached new all-time highs. Similarly, consumer price expectations reached their highest reading since November 1992.

The European Commission's new Economic Uncertainty Indicator stayed virtually unchanged at 14.0 in October, still at a high level compared to pre-pandemic levels.

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