The Economic Sentiment Indicator rose 4.0 points in both the EU and euro area in May, according to the European Commission press release. Employment Expectations Indicator gained 2.4 points in the EU and 2.9 points in the euro area.
At 113.9 points and 114.5 points in the EU and euro area respectively, the economic sentiment is now at pre-pandemic levels and above the long-term average.
Employment Expectations Indicator is now 110.3 and 110.1 in the EU and euro area respectively, both above the long-term averages.
The increase in economic sentiment reflects growing confidence in the service sector.
Industry confidence gained 0.9 points, the sixth month of increase, to reach a new all-time high.
Services confidence booked an 8.8 points growth to exceed the long-term average for the first time in more than 12 months.
Consumer confidence surged for the fourth time, climbing by 3.0 points, reflecting optimism in current and future conditions.
Retail confidence gained 2.8 points to hit a third consecutive month of increase as managers grew optimistic of future conditions.
Construction confidence surged by 1.9 points on better appraisals of order books and employment expectations.
Financial services confidence surged by 9.5 points on expectations of the business situation.
European stocks are currently gaining as the Euro loses. DAX is up 0.60%, EURUSD is down 0.16%.
