The Index represents changes of the services sector sentiment. The index value calculation is based on the enquiry of management positions representatives in Germany, France, Ireland, Italy and Spain. Collectively these countries comprise around 80 % of the overall European services sector activities.
50 points level of the indicator’s value shows that over the accounting period the services sector neither expanded nor reduced. Value above the level means the sector growth. The indicator fall below the 50 points mark means the sector deterioration.
Since more than 60% of GDP is contributed by services sector, this Index represents an important and up-to-date indicator of healthy economy.
Effect of market
The Index has a significant influence over the market in general and Euro in particular.
Index growth or the actual value raise exceeding the forecast is a positive sign for Euro.