European Commission data showed today, Friday, that economic sentiment in the euro area improved in December for the first time since the start of the war in Ukraine amid greater optimism in all sectors of the economy and a sharp decline in inflation expectations. .
The Commission’s monthly index rose to 95.8 in December from 94.0 in November, its first rise since falling from a record high of 114.0 set in February, the same month that Russia invaded Ukraine.
Sentiment in industry improved to -1.5 from -1.9, while service sector sentiment more than doubled to 6.3 from 3.1.
Optimism has also increased among consumers, retailers and builders, indicating that the expected slowdown in economic growth in the last quarter of 2022 and the first quarter of 2023 is likely to be small.
Consumer expectations for inflation over the next 12 months fell sharply in December to 23.7 points from 29.9 points in November, while producer expectations for realized prices fell to 38.4 points from 40.4 points in November.
