Euro Area Industrial Sentiment Edges Up

The Euro Area industrial confidence indicator edged up to -5.3 in August 2026 from -6.1 in July, the highest since April 2023, and compared with market expectations of -5.2. Managers reported stronger production expectations and lower levels of stocks of finished products, which were partly offset by a more negative view of current order books. Regarding the questions not part of the confidence indicator, managers’ assessment of past production relapsed partially after July’s surge, and their views of export order books deteriorated somewhat.

The Euro Area industrial confidence indicator improved to -6.1 in July 2026 from -7.3 in June, outperforming market expectations of -7. Industrial sentiment across the Eurozone continued to strengthen, driven by more optimistic assessments from managers regarding future production and the current level of overall order books. However, views on finished goods inventories deteriorated slightly. Among the survey components not included in the headline confidence indicator, managers reported a sharp improvement in production over recent months. Sentiment toward export order books also became more positive, pointing to a gradual recovery in external demand.

The Eurozone industrial confidence indicator rose slightly to -7.7 in June 2026 from -7.9 in May, but was below forecasts of -7.2. There was a marked improvement in managers' assessment of stocks of finished products and stronger production expectations, while assessments of the current level of order books remained broadly unchanged.