ECONOMIC SENTIMENT
Mar. Result: 102.2
MNS Survey Median: 102.0
MNS Survey Range: 101.0 to 102.5
Feb. Result: 102.8 (revised up from 102.7)

INDUSTRIAL SENTIMENT
Mar. Result: -1
MNS Survey Median: -1
MNS Survey Range: -4 to 0
Feb. Result: +1 (unrevised)

CONSUMER SENTIMENT
Mar. Result: -2
MNS Survey Median: -3
MNS Survey Range: -5 to -1
Feb. Result: -2 (unrevised)

-- FRANKFURT (MktNews) - The European Commission's economic sentiment index for the 12 EMU states fell for the third month in a row, hitting its lowest level since September 1999, although the latest decline was not as severe as expected by most analysts.
The overall index stood at 102.2 in March, down from 102.8 in February (revised up from 102.7) and well below the most recent peak of 104.6 seen most recently in June 2000, the Commission reported Tuesday.
The March result was above the median forecast of 102.0 in a Market News International survey of analysts. It was also in the upper half of the range of individual forecasts (101.0 to 102.5).
The data confirm the gradual eurozone slowdown, although they also suggest the economy may not be weakening as severely as some analysts believe. This could give the European Central Bank (ECB) additional reason to maintain its current wait-and-see stance on interest rates as it seeks to gauge the extent to which the real economy has been hit. Among the 12 eurozone states, the Netherlands, with a 0.9 point drop in March, followed by Belgium, France and Finland (all down 0.8 point), showed the largest decline in the overall index compared to February. Spain and Austria were the only countries not to show a drop.
The latest fall in the overall sentiment index was due to weaker confidence in industry and to a further drop in the share-price index, while consumer sentiment and construction sector confidence were unchanged from February readings.
Industrial confidence, as expected, fell to -1 in March from an unrevised +1 in February, the lowest reading since November 1999. The March figure reflected a deterioration in production expectations, higher levels of stocks and a lower level of order books. Selling price expectations also fell, as did the production trend observed in recent months.
Industrial confidence fell particularly strongly in March in Finland and Italy -- by seven and five points, respectively -- but rose by 3 points in Ireland, compared to February levels. In the other big countries, industrial confidence fell by one point in Germany and by two in France but was flat in Spain.
Eurozone consumer confidence was stable at -2 in March, after falling slightly in February. The latest reading shows that consumer confidence remains at a historically high level, the Commission said. The March figure was also better than the MNI survey median of -3.
Consumer confidence actually improved in Italy (by 3 points vs. February), Austria and Greece (up 2 points each) and in Germany, Spain and Portugal (all up one point). Strong declines were seen in Ireland (down six points) and in the Netherlands and Finland (down four each). French consumer sentiment fell by one point from February.
Construction confidence was steady in March, holding at -2, after falling by three points in February.
On the other hand, the share price index for the euro zone fell to 259.2 from 279.6 in February, for the fourth straight drop.
Industrial confidence and consumer confidence each account for one-third of the weighting in the total economic sentiment index. Share prices and construction industry sentiment each count for one-sixth.
Retail sentiment, which is not included in the overall sentiment index, fell sharply in March to a reading of -4, down from the zero in each of the preceding months but matching the December trough.