Economic mood in eurozone worsens
By Pan Pylas |
February 26, 2010, Friday
|
Print Edition
Print Edition
ECONOMIC sentiment in the 16 countries that use the euro worsened in February, the European Commission said yesterday, in a further sign that the recovery from recession has lost its momentum.
In its monthly survey, the commission said its main economic sentiment indicator fell by 0.1 point to 95.9 in February, partly because consumer confidence deteriorated.
The drop, the first after 10 straight monthly increases, was not expected by markets - the consensus was for a modest increase to 96.6.
"The rebound appears to have lost its momentum," the commission said.
However, it sought to ease the disappointment by noting that the indicator is not far off its long-term average.
Among the euro members, France saw the biggest fall in sentiment, followed by Italy, while advances were seen in Spain, Germany and the Netherlands.
The commission said there was no clear pattern across sectors, with sentiment up in industry and services but lower among consumers. The consumer confidence indicator fell by 1 point to -17, in line with market expectations.
"Consumers' perception of the general economic outlook and increasing unemployment fears, especially in Spain and in Italy, contributed to the overall deterioration," the commission said.
Analysts think that the pace of the recovery in the eurozone will depend heavily on whether consumers raise their spending.
So far, the modest economic growth - the eurozone grew by an anemic 0.1 percent in the last three months of 2009 - has been largely due to a pickup in global trade volumes, which has boosted exports.
For the 27-country EU, which includes non-euro members such as Britain and Sweden, the commission said its economic sentiment indicator rose 0.2 point to 97.4, helped by a big increase in Poland.
In its monthly survey, the commission said its main economic sentiment indicator fell by 0.1 point to 95.9 in February, partly because consumer confidence deteriorated.
The drop, the first after 10 straight monthly increases, was not expected by markets - the consensus was for a modest increase to 96.6.
"The rebound appears to have lost its momentum," the commission said.
However, it sought to ease the disappointment by noting that the indicator is not far off its long-term average.
Among the euro members, France saw the biggest fall in sentiment, followed by Italy, while advances were seen in Spain, Germany and the Netherlands.
The commission said there was no clear pattern across sectors, with sentiment up in industry and services but lower among consumers. The consumer confidence indicator fell by 1 point to -17, in line with market expectations.
"Consumers' perception of the general economic outlook and increasing unemployment fears, especially in Spain and in Italy, contributed to the overall deterioration," the commission said.
Analysts think that the pace of the recovery in the eurozone will depend heavily on whether consumers raise their spending.
So far, the modest economic growth - the eurozone grew by an anemic 0.1 percent in the last three months of 2009 - has been largely due to a pickup in global trade volumes, which has boosted exports.
For the 27-country EU, which includes non-euro members such as Britain and Sweden, the commission said its economic sentiment indicator rose 0.2 point to 97.4, helped by a big increase in Poland.
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