In June, the Economic Sentiment Indicator (ESI) remained broadly unchanged at 100.1 (down by 0.1 points) in the EU and at 98.7 (up by 0.3 points) in the euro area. Among the largest Member States, the UK (-3 points) reported the biggest drop in sentiment (especially in industry), followed by France (-2.3) and the Netherlands (-2.0). In contrast, Spain (+2.3) reported the most significant increase – although this was from one of the lowest levels in the euro area. Improvements were less pronounced in Italy (+1.4). Sentiment in Germany (+0.4) and in Poland (-0.5) remained broadly unchanged. There was no clear cross-sector pattern. Sentiment in industry declined by 1 point in the EU on more cautious
production expectations. Fewer managers reported insufficient stocks of finished products. Sentiment remained unchanged in the euro area, where managers – despite unchanged production expectations – were more upbeat about their order books. Confidence in services improved by 2 points in the EU and by 1 point in the euro area, driven by a brighter assessment of the business situation over the past 3 months. At the same time, managers' expectations of demand weakened in the euro area and remained unchanged in the EU. Sentiment in construction dropped by 2 points in both the EU and the euro area, while it remained unchanged in the retail sector in both regions.
After a sharp decline in May, confidence among consumers remained unchanged in the EU and improved marginally in the euro area (+1), where unemployment fears continued to ease and consumers were more optimistic about the general economic situation. Confidence in financial services – which is not included in the ESI – recorded a significant drop in the EU (-7),driven mainly by a negative assessment of the business situation and demand over the past 3 months. In the euro area the decline was less pronounced (-1).