Confidence Index Declines, Uncertainty Rises for EU Economy

The economic sentiment index for the EU and euro area fell by 1.4 points in April, well below the long-term average of 94.4 and 93.6 points, respectively.

This decline is particularly evident in consumer confidence, the retail trade sector, and, to a lesser extent, services.

The largest declines were recorded in the Netherlands (-2.5) and Italy (-1.8), while economic sentiment improved slightly in Germany (+0.5) and Spain (+0.4). The employment expectations index also fell by 0.7 points.

On the other hand, the economic uncertainty index jumped from 2.8 points in April to 20.4 points. Uncertainty is particularly evident in industry, where it reached a 27-month high.