Eurozone Sentiment Improved More Than Expected in September

Data revealed that the economic sentiment of the Eurozone improved better than expected in September, mainly due to the increase in optimism in the services sector despite concerns about a second wave of the Covid-19 pandemic.

And a monthly survey by the European Commission in the 19-nation Eurozone showed that sentiment rose to 91.1 points this month from 87.5 in August, exceeding market expectations for a rise to 89 points.

The increase is mainly due to improved sentiment in the services sector, the largest in the euro area and contributing around two-thirds of the GDP. The sentiment index in the services sector increased to -11.1 from -17.2. Analysts had expected an increase to -15.7 only.

Optimism in the industrial sector rose to -11.1 from -12.8, which is below expectations for an increase to -10.0, while consumer confidence came in line with expectations and rose to -13.9 from -14.7.

Inflation expectations in the industry sector rose to -6 from 2.1-but continued to decline among consumers to 12.5 from 16.9 in August.