The Eurozone's Economic Sentiment Indicator (ESI) edged up slightly to 95.8 in November from 95.7 in October, exceeding market expectations of 95.1. MIDF Amanah Investment Bank Bhd (MIDF Research) highlighted that despite this improvement, the ESI remains below its long-term average, indicating persistent economic challenges in the region.

According to MIDF Research, the Employment Expectations Indicator (EEI) dipped to 98.9 from 99.2 in October, staying just below its historical average. Sentiment gains were noted in France (+3.0), Spain (+2.1), the Netherlands (+1.5), and Poland (+0.7). Conversely, Germany saw a contraction of 1.3, and Italy experienced a marginal decline of 0.3.

The report pointed out that the Industrial Confidence Indicator improved to -11.1 from -12.6 in October, and retail trade confidence rose to -4.4 from -7.2. However, consumer confidence weakened to -13.7 from -12.5, and services confidence moderated to +5.3 from +6.8. Meanwhile, confidence in the construction sector remained steady at -4.8.

The research house noted that the steadiness of economic sentiment reflects a balance between strengthening industrial and retail trade confidence and weaker sentiment in the services and consumer sectors. They believe the improving industrial confidence suggests that the manufacturing sector may continue its recovery, which could positively influence Malaysia's trade outlook.

However, the house cautioned that downside risks remain, citing escalating global trade tensions and weak domestic demand in the Eurozone economies.