European economic outlook is improving in August 2017, as the Eurozone index reached its highest level in 10 years. The European Commission’s Economic Sentiment Index (ESI) rose by 0.6 points to 111.9 points in August. Economists expected a value of 111.3 points. The positivity was shared by businesses across different sectors, with sub-indices for confidence in industrial and services businesses both rising ahead of forecasts. The Eurozone-wide figures follow similarly positive readings from both official and unofficial measures of confidence in various individual countries.
The European Union (EU) indicator remains at a relatively stable level, recording a fall of 0.3 points also to 111.9 points. This value is just below the 10-year peak reached in July.
Another Business Climate Indicator (BCI) rose by 0.05 points to 1.09 points
Overall, business climate is improving in every major Eurozone economy. In Germany, however, there was a decline, as companies are worried that a rising Euro may shrink their profits, according to the latest study by the Ifo Economic Research Institute. Improved economic attitudes are probably due to optimism in production, the authors of the study said. In the service sector, performance has been particularly well appreciated over the last few months, and high demand is expected in the future.