EU economic sentiment, employment expectations decline in September

Economic sentiment and employment expectations across the EU and the euro area showed a mild decline in September due to lower consumer confidence.

The European Commission reported that the Economic Sentiment Indicator fell by 0.4 points to 97.9 in the EU and by 0.5 points to 97.9 in the euro area.

The Employment Expectations Indicator also receded during the same period, as it dropped by 0.6 points to 98.3 in the EU and by 1.3 points to 97.5 in the euro area.

Lower confidence reported by consumers drove the overall decline in sentiment, even though managers in the industry and construction sectors expressed higher confidence.

Industry confidence continued an upward trend with a one-point increase, while consumer confidence weakened by 0.8 points across the bloc.

Among the largest EU economies, the sentiment indicator fell noticeably by 1.7 points in France and 0.8 points in Italy, but rose significantly by 3.4 points in Spain.

Managers raised their selling price expectations sharply in the construction and industry sectors, while consumers' inflation expectations for the next 12 months increased by 1.8 points.

The Economic Uncertainty Indicator grew by 1.2 points to 18.4, which broke a four-month downward trend that started after its peak in April.