Eurozone Sentiment Falls Again in October

The Eurozone Economic Sentiment Indicator fell for a second consecutive month to 96.9 in October 2026, missing market expectations of 97.5. Consumer confidence deteriorated to -17.9, its lowest level since May, as households became more pessimistic about their past and future financial situations. Meanwhile, inflation expectations remained elevated at 33.9, easing slightly from 34.7 in September. Sentiment also weakened among retailers (-8.0 vs. -6.5), construction firms (-5.9 vs. -5.3), and service providers (5.3 vs. 5.9). In contrast, confidence among manufacturers improved to -3.4 from -3.9. Among major economies, sentiment declined sharply in the Netherlands (-3.4 points), while Germany (-0.7) and Spain (-0.5) recorded more moderate decreases. Italy saw a modest improvement (+0.8), while France remained broadly stable (+0.1).

The Eurozone Economic Sentiment Indicator fell to 97.9 in September 2026 from 98.4 in August, below market expectations of 99.0. It marked the first decline in sentiment since April, as consumers became more concerned about rising oil prices and stalled negotiations to end the six-month US-Iran war. Consumer confidence deteriorated to -16.5 from -15.5, while inflation expectations rose to 35.2 from 33.0. Sentiment was broadly unchanged among retailers (-6.4 vs -6.3) and constructors (-5.0 vs -5.0), while manufacturers’ confidence improved to -3.8 from -5.0 despite higher selling-price expectations (20.3 vs 16.9). Service-sector sentiment also strengthened to 6.1 from 5.6. Among the major economies, sentiment fell sharply in France (-1.7) and moderately in Italy (-0.8), while it rose in Spain (+3.4), Germany (+0.6) and the Netherlands (+0.5).

The Eurozone Economic Sentiment Indicator rose for a fourth consecutive month to 98.4 in August 2026, up from a revised 97.1 in July and above market expectations of 97.5. It was the highest reading since January, as businesses and consumers remained hopeful of a resolution to the six-month-long US-Iran war. Confidence improved across all sectors, with sentiment strengthening among manufacturers (-5.3 vs. -6.1), service providers (5.8 vs. 5.1), consumers (-15.5 vs. -15.9), retailers (-5.7 vs. -6.8) and constructors (-5.0 vs. -5.2). Inflation expectations were mixed: consumer expectations rose to 33.0 from 30.4, while manufacturers’ selling-price expectations eased to 16.4 from 17.8. Among the major economies, sentiment improved in France (+2.3), Germany (+1.3) and Italy (+0.8), was broadly stable in the Netherlands (-0.1), and declined in Spain (-2.2).