Eurozone consumer confidence
According to a report provided by the European Commission, the Eurozone consumer confidence index stood at -1.3 in June, compared to -3.3 in May 2017. It met the market’s expectation of -1.3.
The index has been showing gradual improvement since February 2017. As we discussed in our earlier articles, the Eurozone’s major economic indicators (VGK) (IEV) (HEDJ), including the manufacturing PMI (purchasing managers’ index), the services PMI, the business sentiment index, inflation, and GDP growth, are improving.
In 1Q17, household consumption contributed more to the Eurozone’s GDP. Improving consumption is a positive sign for the economy.
After France’s presidential election, the sentiment for the overall Eurozone economy strengthened. President Emmanuel Macron’s win provided hope for reforms in France. Macron promised during his election campaign that he would put a great deal of effort into making France more business friendly, and he also promised tax exemptions to France’s local housing. Recently, he presented a clean politics bill, which aims to remove corruption from the country’s politics and reinstate investor faith in the system. Macron is pro–European Union (EZU).
However, the Eurozone’s economy could face uncertainty due to Brexit. Billionaire investor George Soros believes that “Brexit is a lose-lose proposition.”
In the next part of this series, we’ll see which indicators investors should look at next week.