Eurozone economic sentiment falls in June to 104.4

Results of the British referendum caused a way of political uncertainty and shocked markets. However, the Eurozone companies are mostly not concerned over this situation.

The UK citizens voted to leave the EU with a majority of votes by 3.8% which caused a deep concern among the EU governors. Euro scepticism is rising in the region so that the Brexit may be just a driver for the same situations in other countries.

According to a report released by the European Commission in the previous week, the Eurozone business sentiment did not reflect a concern of companies and consumers over the referendum, despite different results of preliminary surveys. The Eurozone business sector either did not expect the UK to leave the EU or did not see the risks quite significant.

The Eurozone business sentiment fell in June by 0.2 bp to 104.4. It is high above the level 100.00 which is an average level since 1990, which shows optimism among companies and households.

Despite a stability of the index, everything can be changed in the nearest outlook. The Eurozone business sentiment can fall on the background of the referendum and further possible shocks. Members of exporting sector point at low demand in the UK as consumers can start saving on the background of economic and political uncertainty. Moreover, a sharp fall of the British pound makes services and goods of the Eurozone expensive for British people.