Skip to content
Search

Latest Stories

Euro zone Economic Sentiment Falls for Eight Consecutive Month in August

Poor optimism in industry and services has pulled down Eurozone economic sentiment for an eighth consecutive month in August, stated a monthly survey by European Commission on Thursday (30).

According to the figures released, the Economic Sentiment Indicator (ESI) decreased slightly in the 19 member countries euro area by 0.5 points to 111.6 from 112.1 recorded in July, while it remained stable in the European Union at 112.3 in August.


“The decrease in the euro-area sentiment indicator resulted from a marked deterioration of confidence among consumers and a milder decrease in the services sector, which were only partly offset by increases in the retail trade and construction sectors,” European Commission said.

Confidence in the industry sector remained broadly stable. Amongst the largest euro-area economies, the economic sentiment indicator (ESI) remained virtually unchanged in Germany (-0.1), while it decreased in France (-1.3), Italy (-0.8), Spain (-0.7) and the Netherlands (-0.5).

Broadly flat developments in industry confidence (-0.3) reflected managers' more optimistic production expectations almost offsetting the worsening in their assessment of the current level of overall order books and the stocks of finished products.  Of the questions not included in the confidence indicator, managers' views on both export order books and past production deteriorated, with the worsening of the latter being particularly strong.

The marked decrease in consumer confidence (-1.4) was mainly due to a deterioration in consumers' assessment of the future unemployment, while consumers' views on their future financial situation, the future general economic situation, and their savings expectations remained broadly stable, the EU commission said.

The marked rise in retail trade confidence (+1.4) was fuelled by more positive views on the present business situation and the adequacy of the volume of stocks, while managers' assessment of the expected business situation remained virtually unchanged. The increase in construction confidence (+1.0) resulted from upward revisions in both managers' employment expectations and their assessment of the level of order books.

As in the euro area, EU managers reported a strong upward change in their employment expectations in services and construction and a mild deterioration in industry. Contrary to the euro area, employment expectations improved also in the retail trade sector. Price expectations were up in line with the euro area for the industry and retail trade sectors; however prices in the EU were expected to remain broadly stable in construction and decrease slightly in services. EU consumers' prices expectations increased markedly.

More For You

Prudential to list Indian asset management venture

Prudential chief executive Anil Wadhwani

Prudential to list Indian asset management venture

INSURER Prudential plc announced that it is considering a partial listing of its stake in ICICI Prudential Asset Management, one of India's leading investment firms. The news sent Prudential's shares soaring by 5.8 per cent to close at 722p on the London Stock Exchange.

The FTSE 100 company currently holds a 49 per cent stake in the Indian joint venture, which market analysts estimate to be worth around £4 billion. ICICI Bank, which owns the remaining 51 per cent, has confirmed its intention to maintain its majority shareholding, emphasising its "long-term commitment" to the partnership that began in 1998, reported the Times.

Keep ReadingShow less
NatWest-Reuters

The bank has set a new performance target, aiming for a return on tangible equity of 15-16 per cent in 2025 and above 15 per cent by 2027. (Photo: Reuters)

What’s driving NatWest’s better-than-expected profit growth?

NATWEST reported higher-than-expected annual profit on Friday, supported by its growth strategy, improved productivity, and capital management efforts.

The bank, which once had assets worth 2.2 trillion pounds—more than twice the size of the British economy—has undergone years of restructuring to focus mainly on domestic consumer and mortgage lending.

Keep ReadingShow less
London business district
A general view shows the London's financial district from an office window in Canary Wharf. (Photo: Getty Images)

Economy grows 0.1 per cent in fourth quarter, defying expectations

THE UK economy expanded by 0.1 per cent in the final quarter of 2024, contrary to forecasts of a contraction, according to official data released on Thursday.

The growth, supported by a stronger-than-expected 0.4 per cent rise in December, offers some relief to chancellor Rachel Reeves as she navigates broader economic challenges.

Keep ReadingShow less
BP-Reuters

Fourth-quarter profit dropped 61 per cent compared to the previous year, marking BP’s weakest results since Q4 2020, when the pandemic reduced global oil demand. (Photo: Reuters)

BP reports lowest quarterly profit in four years, plans strategy reset

BP reported a quarterly profit of £943 million on Tuesday, falling short of expectations and marking its lowest in four years.

The company said it plans a "fundamental reset" of its strategy, days after reports that Elliott Management had taken a stake in the oil major.

Keep ReadingShow less
Shein-Reuters

Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)

Shein cuts valuation to £40 billion for London listing

SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.

This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.

Keep ReadingShow less