Economic Confidence Declined in Eurozone

Economic confidence declined in Eurozone. Economic confidence in the region declined for the first time this year.

The epidemic and some disruptions in the supply chain are causing a negative impact on the indicators of the European economy. Eurozone economic confidence index fell to 117.5 in August. Accordingly, a retracement was observed for the first time in the index in 2021. The expectation of economists participating in the Bloomberg survey was that the index would rise to 118. In July, the index hit a record high of 119. Another indicator in the data set, the expectation of sales prices, increased, indicating inflationary pressures. It was known that large-scale factories in the region had difficulties in supplying raw materials due to the disruption in the supply chain. Industrial orders fell in August, according to the study. It was also stated that the service sector's future expectations were less positive compared to previous periods. The service sector confidence index decreased to 16.8 in August. Expectations had been that the index would be 19. Industry confidence index, on the other hand, was 13.7, in line with expectations.