Eurozone Business Activity Hits Three-Year Low

Data from the European Commission show that the economic sentiment index (ESI) for the euro zone decreased from 93.6 points in August to 93.3 points in September, which is the lowest level since November 2020.

The indicator for all EU nations decreased from 93.2 in August to 92.8 in September. The ESI is determined using surveys of representatives from business, services, retail, the building industry, and consumers.

The index is still in the negative region in the biggest European economies. In France, though, the indicator increased somewhat, going from 93.2 in August to 95.9 in September. The indicator in Germany improved by 0.3 points in September, rising to 89 points. Contrarily, in Spain and Italy, where business activity had previously increased, the ESI inched downward in September: 99 points in Spain compared to 102.2 points a month earlier and 97.9 points compared to 100.1 points in Italy.

Despite the statistical evidence and leading indicators, the ECB’s stance on the tight monetary policy remains unchanged.


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