Euro area – Economic sentiment likely deteriorated

The Economic sentiment index is expected to have deteriorated in May to 103.0 from 103.7 in April. The services sector still has a more optimistic economic outlook than the manufacturing sector, while the construction sector is the most pessimistic. 

Other surveys released earlier (PMI composite and IFO) showed a small deterioration as well, possibly reflecting the rise in energy prices and nervousness over Greece. Analysts do not yet believe this change in survey direction to be a cause for concern about the broader euro-area outlook. Growth to be in the range of 0.4-0.5% q/q for the rest of the year, estimates Standard Chartered.