Services Sentiment Indicator reflects business sentiments in the service sector of the eurozone. The index is calculated monthly based on a survey of the largest service sector companies. The calculation is seasonally adjusted.
The sample size for the eurozone is about 18 thousand companies representing all sectors of the service industry in the eurozone. The number of companies per country is calculated in accordance with the contribution of a particular country to the economy of the euro area.
Managers are polled to answer questions about business sentiments over the past three months and to provide an outlook for business conditions, as well as expected output prices in the next quarter. The index is calculated as the arithmetic mean of summary balances of survey answers to the questions:
Respondents are asked to provide a qualitative evaluation of the above variables, rather than qualitative ones.
Due to the generalized nature of the Services Sentiment Indicator, it reflects a relative picture of business conditions in the euro area. Economists consider it as one of the composite indicators of economic development. The indicator growth speaks of improvements in service sector conditions and is a leading indicator of economic development. Investors interpret the index growth as a signal to increase investment in appropriate companies.
Index changes usually have a weak and short-term effect on euro quotes. However, sharp movements of the index chart can be seen as a serious indicator of changing economic conditions.
The chart of the entire available history of the "European Union Services Sentiment Indicator" macroeconomic indicator. The dashed line shows the forecast values of the economic indicator for the specified dates.
A significant deviation of a real value from a forecast one may cause a short-term strengthening or weakening of a national currency in the Forex market. The threshold values of the indicators signaling the approach of the critical state of the national (local) economy occupy a special place.
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The Calendar data are provided as is. The economic news release frequency and schedule, as well as the economic parameters' values may change without our knowledge. You can use the provided information, but you accept all the risks associated with making trade decisions based on the Calendar data.