The economic sentiment indicator in the Euro Area rose to 96.4 in December 2023, up from the revised 94.0 of the previous month. Sentiment reached the highest level since May, as confidence improved in all sectors despite an uptick in inflation expectations. The gauge for morale among manufacturers rose to -9.2 in December from November’s -9.5, and that for service providers increased to 8.4 from 5.5. Additionally, confidence improved among consumers (-15.0 vs -16.9), retailers (-5.7 vs -7.1), and constructors (-3.6 vs -4.4). Among the largest Euro Area economies, the ESI improved in Italy (+2.6), Spain (+2.4), and Germany (+2.4), while it eased in the Netherlands (-1.1) and, to a lesser extent, in France (-0.5).
