European Sentiment on the Economy and Employment Are Hovering 2017 Highs

Europeans were more optimistic about both the economy and employment as sentiment grew above average in May, the European Commission reported.

• The Economic Sentiment Indicator (ESI) gained 4.0 to hit 113.9 in the European Union and 114.5 in the Euro area.
• The latest figures are above the long-term average and pre-pandemic level, hitting close to the peak recorded in December 2017.
• The growth was driven by confidence in the services sector. Increases were also recorded in industry, retail trade, construction, and among consumers. 
• Industry confidence grew for the sixth straight month to carve a fresh all-time high, on the back of positive developments in overall order books.
• The Employment Expectations Index (EEI) grew by 2.4 points as most of the surveyed business sectors were upbeat on employment plans.
• Selling price expectations posted an all-time high after the third month of marked and uniform increases across the business sectors.