Economic news

Business sentiment of euro zone down, suggesting economic expansion slowdown

Business sentiment in the 19 states using the euro is down for the third straight month in March, as the European Commission’s figures revealed today, which implies that the EU’s economic expansion was not as solid as seemed before.

The Business Sentiment Index of the EC waned to 112.6 in the current month from 114.2 in February, which is lower than the Reuters poll’s average prediction of 113.4.

The pessimistic data of business sentiment along with decreasing inflation prospects, and data showing loan growth, as well as money stock in euro zone had had a pressuring effect on the euro.

The West and Russia tensions, together with new import tariffs introduced by the U.S. President have made markets wary in the past few weeks and also seem to have impacted consumers, economists said.

According to the recent data from the ECB, euro zone expansion might outdo forecasts in the short run, but the business sentiment is showing continuation of a downward trajectory, following Germany’s business mood fall to the lowest level in the past 11 months.

The prediction from the EC is that the euro zone economy will grow by 2.3% in the current year, while last year’s growth was 2.4%.


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