Eurozone economic sentiment unexpectedly rises in September

Economic confidence in the euro area improved slightly in September, according to the results of the European Commission survey on Wednesday. The Commission said its economic sentiment indicator, a global indicator of business and consumer confidence, rose to 117.8 in September from 117.6 in August. The result is higher than the consensus forecasts of economists who expected the reading to be at 116.5.

The stability of the indicator in September results from an improvement in confidence in construction and among consumers, offset by a deterioration in confidence in services and retail trade, the European Commission said.

“For now, the data remains consistent with a decent pace of recovery,” said Davide Oneglia, economist at TS Lombard, a macroeconomic research and forecasting consultancy.

Meanwhile, the UK economy grew more than previously thought during the April-June period, official data showed Thursday, ahead of what more recently looks like a sharp slowdown amid bottlenecks in the economy, especially a shortage of truck drivers, is piling up.

Gross domestic product rose 5.5% in the second quarter, the Office for National Statistics (ONS) said. This is an improvement from its preliminary growth estimate of 4.8% and reverses the 1.4% contraction in the first quarter. The ONS said the data had been adjusted to take into account more comprehensive data from the health sector as well as an update to its sources and methodology for calculating UK economic output.

Overall, while upward revisions to GDP are clearly welcome, the second quarter is three months old and the recovery appears to have stalled since then, said Ruth Gregory, an economist at Capital Economics.

Finally, in the United States, contracts signed to buy existing homes rose 8.1% month-over-month in August, a seven-month high, according to the National Association of Realtors, with buyers meeting higher stocks and slightly more favorable prices. Analysts expected a monthly increase of 1%. Signings were still down 8.3% from August 2020. August’s increase followed two months of decline, according to the NAR.

“Rising inventories and moderating pricing conditions are bringing buyers back into the market,” said Lawrence Yun, chief economist of NAR.

“Affordability, however, remains difficult, as the gains in house prices are about three times greater than the growth in wages. “

This article has been prepared by Bank of Valletta plc for general information purposes only.

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