The economic sentiment indicator for the Euro Area dropped to 101.7 in September 2019 from 103.1 in the previous month, below market expectations of 103.0. That was the lowest reading in nearly five years, as sentiment in the industry sector fell to its lowest level since July 2013 (-8.8 vs -5.8 in August). Morale also deteriorated among retailers (0.1 vs 0.6) and constructors (3.8 vs 3.9), while an improvement was seen in confidence among service providers (9.5 vs 9.2) and consumers (-6.5 vs -7.1). Economic Optimism Index in the Euro Area averaged 100.82 from 1985 until 2019, reaching an all time high of 118.10 in May of 2000 and a record low of 68.30 in March of 2009.
Economic Optimism Index in Euro Area is expected to be 102.50 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Economic Optimism Index in Euro Area to stand at 105.10 in 12 months time. In the long-term, the Euro Area Economic Sentiment Indicator is projected to trend around 104.00 in 2020, according to our econometric models.