Euro-Zone Economic Confidence Improves for the First Time Since May 2008

The Euro-Zone April economic sentiment indicator (ESI) jumped to 67.2 from 64.7 in the previous month. Our median was 65.3, so data were much better than forecast, which is not a total surprise, however, in the light of stronger than expected PMIs and national survey findings. The breakdown showed industrial confidence improving to -35 from -38 and services confidence to -24 from -25. Construction and retail confidence on the other hand eased in April. Consumer confidence improved to -31 from -34, with expectations for future major purchases unchanged for a third consecutive month. The readings for the personal financial situation and savings improved somewhat and consumers were clearly more optimistic about the general economic outlook. All in all data tie in with other positive survey findings and confirm that confidence is bottoming out. Readings remain low and data remain consistent with expectations for two more quarters of negative growth, but it seems the contraction is at least starting to bottom out.