Euro zone economic sentiment falls in June

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Euro zone economic sentiment falls in June

The Euro zone's economic sentiment fell by slightly less than expected in June, as consumers and retail trade became more downbeat, but spirits among the industrial and services sectors improved.

The European Commission's monthly survey showed that economic sentiment in the 19 countries sharing the euro fell to 104.0 in June from 105.0 in May. Economists polled by Reuters had predicted a reading of 103.0 in June.

Sentiment in industry increased to 7.4 points from 6.5 in May and for services, the economy's biggest sector, to 14.8 from 14.1 in May. Some manufacturers were more optimistic about the future production and order books, but less so on employment and saw greater uncertainty. The service sector was more optimistic about business over the past three months, but less optimistic about it.

Consumer confidence slipped to 23.6 from 21.2 and retail trade sentiment to 5.1 from 4.2. The households had a more pessimistic view on the economy over the past and coming year as well as their prospects of making major purchases and savings.

Sentiment slipped in the euro zone's five largest economies, most markedly in the Netherlands.

Consumer inflation expectations, which reached an all-time high in March, continued to decline, falling to 42.6 in June from 45.5 in May. The selling price expectations for manufacturers fell to 50.4, down from a record high of 59.5 in April.