Eurozone Economic Sentiment Slips in February

The Eurozone Economic Sentiment Indicator (ESI) fell to 98.3 in February 2026, down from a three-year high of 99.3 in January and below market expectations of 99.8. Sentiment weakened among service providers (5.0 vs 6.8), manufacturers (-7.1 vs -6.8), and construction firms (-2.1 vs -1.3). Consumer confidence (-12.2 vs -12.4) and retailer sentiment (-4.5 vs -5.7) showed modest improvement. Among major economies, the ESI declined sharply in France (-2.8), followed by Italy (-0.6), while remaining broadly stable in Spain (±0.0), Germany (-0.2), and Netherlands (-0.2). On the pricing front, consumer inflation expectations rose 1.6 points to 25.8, while manufacturers’ selling price expectations increased 1.2 points to 11.5, highlighting ongoing inflationary pressures.

The Eurozone Economic Sentiment Indicator (ESI) climbed to 99.4 in January 2026, up 2.2 points from a revised 97.2 in December and well above market expectations of 97.0, marking its highest level since January 2023. Sentiment among service providers rose to 7.2, the strongest since January 2024, while manufacturers’ confidence improved to -6.8, the best reading since May 2023. Consumer confidence also strengthened, reaching -12.4, its highest since February 2025. On the pricing front, consumer inflation expectations eased 2.6 points to 24.1, and manufacturers’ selling price expectations fell 0.8 points to 10. Among the bloc’s largest economies, the ESI rose in France (+5.8), Germany (+3.0), the Netherlands (+2.3), Spain (+1.7), and Italy (+1.3).

The Eurozone Economic Sentiment Indicator (ESI) edged down to 96.7 in December 2025 from a 31-month high of 97.1 in November, coming in slightly below market expectations of 97 and remaining under its long-term average. Confidence weakened among service providers (5.6 vs. 5.8), retailers (-6.9 vs. -5.7), and consumers (-13.1 vs. -12.8). In contrast, sentiment improved modestly in manufacturing (-9.0 vs. -9.3) and construction (-1.3 vs. -1.6). Inflation expectations showed renewed upward pressure. The consumer inflation expectations index rose by 2.4 points to 26.7, while manufacturers’ selling price expectations increased by 1 point to 10.9. Among the euro area’s largest economies, sentiment declined in Germany (-1.1), France (-0.9), Italy (-0.6), and Spain (-0.5), while the Netherlands was the sole major economy to record an improvement (+0.5).