Ankara: Economic sentiment improved in both the EU and the euro area in June, while employment expectations declined sharply, according to European Commission survey results released Monday. The Economic Sentiment Indicator rose by 1.3 points in both regions, reaching 95.1 in the EU and 95.0 in the euro area. Despite the monthly improvement, the indicator remained below its long-term average of 100 in both regions.

According to Anadolu Agency, the Employment Expectations Indicator fell markedly by 2.3 points to 92.9 in the EU and by 2.2 points to 92.2 in the euro area, also remaining below its long-term average. The improvement in economic sentiment was driven by higher confidence in most sectors, including retail trade, industry, services and among consumers, while construction confidence declined.

Among the EU's largest economies, sentiment rose significantly in the Netherlands, up 4.1 points, Germany, up 1.7 points, and Italy, up 1.3 points. Spain posted a modest increase of 0.7 points, while the indicator was broadly stable in Poland and France. Industry confidence rebounded by 0.6 points, supported by managers' improved assessment of stocks of finished products and stronger production expectations. Services confidence rose by 0.5 points, mainly due to more positive demand expectations.

Consumer confidence also continued to recover from the sharp decline recorded in March and April, increasing by 1.2 points. The improvement reflected less pessimism among consumers about their country's general economic outlook and their household finances. Retail trade confidence climbed by 1.2 points as retailers' assessment of their recent business situation and stocks improved. Construction confidence weakened by 0.6 points due to lower employment expectations among builders.

The fall in employment expectations was driven by weaker hiring plans in retail trade, services and construction, while employment plans edged up in industry. The EU Labour Hoarding Indicator eased by 0.5 points to 10.0 but remained above its long-term average of 9.7.

Selling price expectations continued to decline from their April peaks across all four business sectors, particularly in construction and industry, though they remained above long-term averages. Consumers' perceptions of price developments over the past 12 months and their expectations for prices over the next year also fell considerably, but remained elevated by historical standards. The Economic Uncertainty Indicator declined by 1.2 points for a second consecutive month, as uncertainty eased in construction, industry, services and among consumers.