EU survey shows steady growth in August

A European Union (EU) survey issued on Friday shows that the Economic Sentiment Indicator (ESI) went up a notch in the entire bloc and euro area in August, suggesting the EU continues its steady economic recovery in the third quarter.

According to the survey released by the European Commission, or the executive body of the EU, the ESI in this month climbed by 0.2 points to 104.2 in euro zone and also up by 0.4 points to 107.0 in wider EU.

Among the largest euro-area economies, the ESI rose in France and Spain, but deteriorated in Germany and the Netherlands.

The figure in Greece plunged again despite the approval of its third bailout package earlier this month.

Consumer confidence improved marginally by 0.3 points, with consumers more positive on the future economic situation but less optimistic on employment, Their expectations of the financial situation and future savings remained broadly unchanged, the survey said.

However, industrial confidence fell to its lowest level since February, prompting fresh worry.

"At its current level, the euro zone ESI is consistent on past form with annual GDP growth accelerating to about 1.5 percent, better than the second quarter's 1.2 percent outturn," European economist at Capital Economics Jessica Hinds said in a report. As Greece's snap election in September continued to add uncertainty, economists warned that Greek situation has the potential to damage economic sentiment across the euro zone and trigger renewed falls in the ESI.

"As such, the ECB (European Central Bank) may come under growing pressure to increase the pace of its asset purchases," Hinds said. Endit