Euro Zone Construction Declines 1.6%, German Confidence Improves

Arthi Gupta
19 Dec, 2012
New York City

Euro area construction output declined in October. German business confidence improved more than anticipated in December. The Dutch economy is set to contract this and next year.

[R]1:30 PM Frankfurt – Euro area construction output declined in October. German business confidence improved more than anticipated in December. The Dutch economy is set to contract this and next year.[/R]

Euro Zone Construction Output Falls

Euro area construction output declined in October, according to data released by Eurostat, the statistics office of the European Union today.

From a month ago, construction output fell a seasonally adjusted 1.6% in the euro area in October, after a 1.3% decline in September.

In the EU27, construction rose 1.6% in October compared to a 1.6% decline in September.

Compared with October 2011, production in October dropped 4.1% in the euro area and 4.4% in the EU27.

Separately, euro zone''s seasonally adjusted current account surplus rose to €3.9 billion in October from €2.4 billion in September, a report from the European Central Bank showed today.

The surplus on goods account rose to €6.2 billion in October from €4.9 billion a month earlier. The surplus on services account increased to €7.1 billion in October from €6.9 billion in September.

German Confidence Improves

Germany''s business confidence improved more than anticipated in December, according to a survey from the Ifo Institute.

The headline business climate index rose to 102.4 in December from 101.4 in November.

In another report, Germany''s leading economic index remained unchanged at 101.6 in October after dropping 0.6% in September, data from a survey by the Conference Board showed.

The coincident economic index, which measures the current situation, decreased 0.4% to 106.4 in October from 106.8 in September.

Dutch Economic Outlook Lowered

The Dutch economy will likely contract this year and the next, according to a report published by The Netherlands Bureau of Economic Policy Analysis in its quarterly economic forecasts.

The Dutch economy is estimated to shrink 1% in 2012, and decline 0.5% in 2013, according to the agency report. Unemployment is expected to rise to 6% in 2013.

This year’s EMU deficit is expected reach to 3.8% of GDP and fall to 3.3% in 2013.

Swedish Economic Sentiment Gains

Sweden''s economic confidence rebounded in December, data from a survey by the National Institute of Economic Research showed.

The Economic Tendency Indicator increased to 89.6 in December from 86 in November.