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Eurozone confidence continues recovery for fourth month

Eurozone confidence continues recovery for fourth month

The European Commission data on confidence released on Friday showed an improvement for a fourth consecutive month in August, after hitting a record low due to the closure measures to avoid the outbreak of the Corona pandemic.

The confidence index in the euro zone economy rose to 87.7 points during the month of August, compared to July’s reading of 82.4 points, which is higher than market expectations of 85.0 points.

Despite the rise, the index's readings remain well below pre-Coronavirus or long-term levels.

The recent recovery that took a gradual form from May, was driven by higher optimism in the services sector, which is the largest economic sector in the euro area.

Confidence in the services sector experienced a significant improvement to -17.2 in August from the previous reading - 26.2.

Also, the Consumer Confidence Index rebounded slightly to -14.7 points from -15.0, confirming the preliminary estimates released by the Commission earlier in August.

The euro recorded its highest level this week against the dollar at 1.1918 after it opened trading today at the level of 1.1818, so that the European currency is on its way to record a weekly rise, taking advantage of the dollar's weakness after US Federal Reserve Chairman Jerome Powell's speech yesterday at the Jackson Hole symposium.

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