The economic sentiment in the Eurozone took an unexpected downturn in April, contrary to forecasts. According to the latest data released by the European Commission, the composite index for assessing economic development dropped to 95.6 points from 96.2 points the previous month. Economists surveyed by Dow Jones Newswires had anticipated an increase to 96.6 points. Similarly, the indicator for the entire European Union (EU) declined to 96.2 points from 96.5 points in the previous month.
Across the EU, the decline in economic sentiment reflected a slight decrease in confidence in the industrial and services sectors, while confidence in retail, construction, and among consumers remained largely stable. Notably, among the largest EU economies, economic sentiment significantly deteriorated in France (minus 4.8) and less so in Italy (minus 1.3), while it notably improved in Spain (plus 2.3), Germany (plus 1.5), and Poland (plus 1.5). The Netherlands saw a marginal stability (plus 0.3).
Industrial confidence in the Eurozone dropped to minus 10.5 points from minus 8.9 points the previous month, defying expectations of stability at 8.8. Meanwhile, consumer confidence for the common currency area saw a slight uptick to minus 14.7 points from minus 14.9 points in the previous month, aligning with both initial reports and economists' forecasts.