- Howard Archer, Chief UK and European Economist at IHS Global Insight
The European Commission's Economic Sentiment Indicator, a measure of business and consumer confidence, was stable in May, after slightly falling in April from near the highest level in four years in March. The index stood at 103.8 in the reported month, unchanged from April. Overall economic sentiment was mixed across the Euro zone. While it improved in Germany, France, and the Netherlands, it dropped in Italy and Greece. It remained unchanged in Spain. Yet, business and consumer confidence in the currency bloc stayed well above long-term average, as the Euro, energy prices and bond yields support economic growth in the region.
Meanwhile, confidence in the Euro zone's third biggest economy's manufacturing sector remained strong in May, albeit the indicator fell in the reported month. The Manufacturing Confidence Index slid to 103.5 in May, from 104.0 a month earlier. At the same time, Spanish shops recorded lower shopping activity in April compared with the previous month. Retail businesses in the Euro area's fourth biggest economy enjoyed growth of 2.9% year-on-year in April. In the previous month, however, the gauge had booked a 3.7% jump, when measured on a yearly basis. In addition to that, the final data confirmed that the Spanish economy grew 0.9% in the first quarter, after adding 0.7% in the final three months of 2014.
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