Eurozone perks up as confidence and sentiment rise

New survey data shows that the outlook is thought to be optimistic for the Eurozone as a whole in June.

Economic sentiment is up from 89.5 (revised from 89.4) to 91.3 (90.3 expected) and consumer confidence from -21.9 to -18.8, inline with expectations.

Services sentiment performed worse, falling from -9.2 (revised from -9.3) to -9.5, despite forecasts of an improvement to -8.8.

Other figures - to which less attention is paid - include business climate and industrial confidence.

Business climate rose, but below expectations, up from -0.75 (revised from -0.76) to -0.68 (-0.65 expected). Industrial confidence jumped from -13.0 to -11.2 (-12.4 expected).

Ben May, European economist at Capital Economics, said:

The stronger than anticipated rise in the economy-wide Economic Sentiment Indicator (ESI) left the headline index at its highest level since May 2012. For now, the index is consistent with annual falls in euro-zone GDP of just under 1%.

This suggests that, in quarterly terms, GDP may have begun to stabilise after six consecutive contractions. But remember that the index has staged mini recoveries over the past couple of years that have subsequently been reversed. In addition, the composite PMI paints a slightly more downbeat picture of near-term growth prospects.