According to the report from the European Commission, in January the index of economic sentiment fell to 112.7 points compared to 113.8 points in December (revised from 115.3 points). Economists had expected the index to be 114.5 points. In the European Union, this index fell to 111.6 points compared to 113.0 points in December.
The decline in the index in the EU was associated with a deterioration in confidence in the services sector, the construction sector, the industry sector and consumer confidence. Meanwhile, in the retail sector, confidence increased moderately compared to December.
The data showed that the index of confidence in the industrial sector fell by 0.9 points, which was due to a decrease in demand. Meanwhile, the index of confidence in the service sector fell by 2.0 points amid a deterioration in estimates of past activity and demand. The consumer confidence index fell by 0.4 points, which was caused by pessimistic expectations about the future financial situation. In addition, the confidence index in the retail sector increased by 2.2 points on the back of a noticeable improvement in the estimates of the past and expected business situation. The confidence index in the construction sector fell by 1.4 points - for the first time since August 2021 - which was caused by a deterioration in the employment assessment.
The data also showed that the indicator of economic uncertainty increased by 0.4 points to 17.3 points, which was caused by an increase in industry and the service sector.