The confidence of entrepreneurs and consumers in the euro area economy decreased in November, due to the upsurge of coronavirus and New lockdowns in European countries. The European Commission reported it on the basis of its confidence index.
The measure dropped by 3.5 points to 87.6 points. The index indicates a negative confidence below 100 points and is above 100 positive. It is the first decline since May, when the partial recovery in economic confidence began. The commission says that there has been a deterioration, particularly in the services sector, retail trade and consumers, and to a much lesser extent in industry and construction.
In the largest economies of the euro area, confidence declined, led by Italy and France. In the Netherlands there was a slight improvement. Confidence also declined throughout the European Union.
ING economist Bert Colijn believes that the news about coronavaccins is likely to help improve sentiment, but this is not yet reflected in the November figures. In this respect, it is now the “dark hours before sunrise” for euro area businesses and consumers, says Colijn.