European zone economic sentiment fell for the first time in seven months in November following the second wave of Covid-19 hit the European continent. The worsening spread of the Covid-19 pandemic has affected almost all sectors of the economy and has been compounded by control measures.
A monthly survey by the European Commission found that the sentiment of 19 countries in the European Union showed a less encouraging reading, which fell to a reading level of 87.6 points compared to the October reading of 91.1 points.
This survey is usually done in the first two to three weeks of the month which gives an indication of ‘mood’ or market sentiment when control movement measures are announced in several countries including the two largest economies of the European zone namely Germany and France.
This fall is the first sharp fall after successfully recording a recovery from May to October.
Consumer sentiment fell to -17.6 in November from -15.5 points in October. Industrial sentiment fell to -10.1 from -9.2 points.
Finally, inflation expectations in the industry dropped to 0.2 points from 0.7 points.
