The eurozone appeared to have slipped deeper into recession in June with a key economic sentiment survey released Thursday falling to its lowest level in about two and half years, according to dpa. The European Commission said its closely watched Economic Sentiment Indicator (ESI) for the eurozone edged down from 90.5 points in May to 89.9 in June, as a result adding to signs that a major contraction is underway in the region's economy. The indicator now stands at its lowest level since October 2009. "June's European Commission survey mirrors the picture from other timely indicators lately that the eurozone is in a deepening and broadening recession," said Jennifer McKeown, senior European economist with the research group Capital Economics. The drop in the monthly indicator came amid falling confidence in the region's industrial and service sectors as well as a weaker reading among consumers, the commission said. Analysts had, however, expected a bigger decline, to 89.6 points. Worryingly, the decline followed signs of growing uncertainty in the 17-member currency bloc's leading states - Germany and France. While the ESI for Germany dropped by 1.4 points, the indicator fell 1.5 points in France. However, the ESI for Spain and Italy, which have been at the centre of the renewed worries about the eurozone, gained during June. While the indicator climbed 1 point in Spain, it rose 0.9 in Italy. The fall in the monthly indicator was despite a pickup in the mood among the eurozone's retail traders and construction sector.
