Euro-zone GDP outlook less grim, sentiment index up again

29 September 2020

 

Summary: Euro-zone composite sentiment index improves; above expectations; all major economies’ indices improve; sovereign bond yields modestly lower; index implies GDP smaller contraction.   The European Commission’s Economic Sentiment Indicator (ESI) is a composite index comprised of five differently-weighted sectoral confidence indicators.  It is heavily weighted towards confidence surveys from the business sector; the consumer confidence sub-index only accounts for 20% of the ESI. However, it has a good relationship...

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