Euro Area Economic Sentiment at 5-Month High

The Economic Sentiment Indicator (ESI) in the Euro Area picked up 1.6 points to 95.8 in July 2025, the highest in five months and above market expectations of 94.5.

The upturn was driven by higher confidence in industry (-10.4 vs -11.8 in June), services (4.1 vs 3.1), retail trade (-6.7 vs -7.6), and a marginal improvement in consumer confidence (-14.7 vs -15.3), while confidence in construction (-3 vs -2.9) declined slightly.

Amongst the largest EU economies, the ESI improved markedly in France (+2.4), Spain (+2.2), Germany (+1.2) and, to a lesser extent, in Italy (+0.4), while it remained broadly stable in the Netherlands (-0.2) and decreased markedly in Poland (-2.1).