Europe Economic Sentiment Hits A 21 Year High In June

The economic mood in the European Union reached its best level in 21 years in June. Its index rose by three points to 117 points. The European Commission announced it today. According to the commission, the economic mood index in the Czech Republic rose to 106.1 points from 99.4 points in May.

The growth in the EU economic sentiment index was mainly due to the improved situation in the services sector, which had previously been hit hard by coronavirus restrictions. However, the mood also improved in June in the other sectors monitored, ie industry, retail trade and construction, as well as among consumers.

In the euro area, the economic sentiment index rose to 117.9 points from 114.5 points in May, so it also climbed to a 21-year high. It also exceeded the expectations of analysts, who estimated its June value in a Reuters poll at 116.5 points.

The European economy has recently benefited from the progressive vaccination against covid-19 and the declining number of new cases of coronavirus infection, which allows for the relaxation of restrictive measures. Preliminary data from IHS Markit last week showed that business activity in the euro area reached its highest level in 15 years in June.