Coronavirus triggered a record decline in EU

US, WASHINGTON (ORDO NEWS) — The economic sentiment index in the eurozone showed a record monthly decline in March due to measures to combat the spread of coronavirus, according to the European Commission.

The composite index of business and consumer confidence in the eurozone economy fell to 94.5 points from 103.4 points in February. This is the sharpest decline in the indicator since the beginning of observations in 1985. As a result, the index was at its lowest level since August 2013.

The indicator of sentiment in the service sector fell from 11.1 to -2.2 points, which also became the largest monthly decline in the entire history of observations.

The situation also worsened in the industrial sector of the eurozone, where the sentiment indicator fell from -6.2 to -10.8 points.

The consumer confidence index in March fell from -6.6 to -11.6 points.

The retail sentiment indicator fell from -0.2 to -8.3 points.

Meanwhile, the mood indicator in the construction sector decreased from 5.4 to 2.7 points.

Among the largest economies in the eurozone, Italy showed the sharpest decline in economic sentiment: the index fell from 101.3 to 83.7 points. In Germany, the index fell from 101.8 to 92 points, in France – from 105.5 to 100.6, in Spain – from 102.7 to 99.3 points.

Luis de Guindos, vice president of the European Central Bank, said earlier that the consequences of the outbreak of coronavirus will lead to recession in Europe, although the region’s economy should show growth in the second half of the year.

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