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Euro area economic sentiment rises to 3-month high

Euro area economic sentiment rises to 3-month high

Euro area economic sentiment for June climbed to the highest level since March, as the removal of the lockdown restrictions helped the index to recover.

The European Commission’s economic sentiment index soared from 67.5 in May to 75.7 in June, marking the highest level since the eruption of the pandemic in Europe in March. However, the reading is still weak compared to February’s level of 103.4.

Consumer confidence up and all business sectors increased, raising hopes that the return of confidence could be the beginning of a V-Shaped recovery.

Industrial sentiment rose from -27.5 to -21.7, while confidence in the service sector ascended from -43.6 to -35.6.

As of 10:55 GMT, the euro strengthened versus the U.S. dollar at 1.1284, set for its first daily gain in four sessions, following its lock to a weekly gain last week.

Meanwhile, there are lingering concerns from the United States after the re-imposition of lockdown restrictions from the States of Texas, Florida and Arizona.

Later in the week, the eurozone will release its final manufacturing and services PMI data for June, which will provide clues about the health of the economy after the end of the second quarter.

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