Confidence of entrepreneurs in the eurozone shows considerable fall

The confidence of the businessmen of the eurozone registered an important worsening in July, as reflected by the indicator prepared by the European Commission, which has stood at -0.12 points, compared to 0.17 of the previous month, thus registering his worst reading since September 2013.

In July, business managers in the eurozone were more pessimistic about production levels and activity expectations, as well as the evolution of exports. Only one improvement was recorded in regard to their inventory levels.

On the other hand, the economic confidence of the eurozone, which incorporates data from companies and consumers, has registered a worsening in July, standing at 102.7 points from 103.3 in June, its lowest level since June 2015. While in the whole EU the data has registered its worst reading since September 2014, with 102 points, compared to 102.3 in the previous month.

The pessimism in the economy of the eurozone responds to the strong deterioration of confidence in the industry, whose indicator has been -7.4 points in July, its worst reading in the last six years, as well as the deterioration of the services sector, whose data has dropped to 10.6, the weakest since September 2016.

Among the strongest economies of the eurozone, Germany‘s economic confidence has suffered in July the most pronounced deterioration, with a fall to 100.2 points from 102.6 in June, at a minimum since June 2013. In the case of France, the second largest economy in the euro, has remained stable at 104.1 points.

In contrast, Spain, Italy and the Netherlands have recorded more optimistic readings of the economic confidence data, which has improved six tenths in Spain, up to 105.4 points, while in Italy it has increased by 1.4 points, up to 101, 6, and 1.7 points in the Netherlands, up to 104.5.

Source: dpa