The economic sentiment indicator in the Euro Area fell for a eleventh consecutive month to 109.5 in November 2018 from a downwardly revised 109.7 in the previous month, but still above market expectations of 109.0. It remained at the lowest level since May 2017 amid a steep deterioration in consumer morale (-3.9 vs -2.7 in October). Meanwhile, sentiment was unchanged among service providers (at 13.3) and constructors (at 7.9), while confidence improved among manufacturers (3.4 vs 3.0) and retailers (-0.6 vs -0.8). Economic Optimism Index in the Euro Area averaged 100.84 from 1985 until 2018, reaching an all time high of 118.30 in May of 2000 and a record low of 68.50 in March of 2009.
Economic Optimism Index in Euro Area is expected to be 110.00 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 109.00 in 12 months time. In the long-term, the Euro Area Economic Sentiment Indicator is projected to trend around 108.00 in 2020, according to our econometric models.