European sentiment inches higher but stays close to five-year low

(Sharecast News) - Economic sentiment across the eurozone was broadly stable over the month of May, according to the European Commission on Thursday, stabilising after hitting its lowest in over five years the previous month amid heightened geopolitical tensions in the Middle East.

The EC's Economic Sentiment Indicator rose just 0.3 points to 93.5 this month after dropping to 93.2 in April - its lowest since November 2020.

Despite the minor uptick, results beat analysts' expectations with the consensus forecast pointing to a further deterioration to 92.8.

The ESI for the wider European Union was also more or less flat, rising 0.3 points to 93.7, as a partial rebound in confidence in services and among consumers was mostly offset by declines in industry, retail trade and construction.

Meanwhile, the Employment Expectations Indicator for the EU rose 2.1 points to 95.4, but stayed below the long-term average.

Among the largest economies, the sentiment gauge improved in Germany (+1.0), France and Poland (+0.9), remained broadly stable in Italy (+0.1) and Spain (-0.1), and decreased in the Netherlands (-0.9).