Euro Area Services Sentiment Falls in October

The Services Sentiment in the Eurozone fell to 5.3 in October 2026 from a downwardly revised 5.9 in September and compared to forecasts of 5.9. The decrease reflects managers’ more negative views on both demand and the business situation over the past 3 months. By contrast, demand expectations for the next 3 months improved. Among the bloc’s largest economies, confidence fell in Germany (3.7 vs 6.6), France (-2.9 vs -2.6) and the Netherlands (4.5 vs 5.8), while it improved in Italy (7 vs 4.4).

The index measuring confidence in the Eurozone services sector rose for a fifth consecutive month to 6.1 in September 2026, its highest level since January, up from 5.6 in August. Among the bloc’s largest economies, confidence improved in Germany (7.1 vs 5.7), France (-2.5 vs -3.4) and the Netherlands (6.1 vs 4.7), while it weakened in Italy (4.1 vs 7). The assessment of demand over the previous three months increased to 8.2 from 5.2, while expectations for demand over the next three months eased to 8.2 from 9.5. Meanwhile, selling-price expectations edged down to 13.6 from 14, while employment expectations for the next three months also weakened slightly, to 1.4 from 1.6. Uncertainty, however, increased to 14.6 from 12.6.

The index measuring service sector confidence in the Eurozone rose to 5.8 in August of 2026 from the upwardly revised 5.1 in the previous month, the highest in seven months, and contrasting with expectations that it would ease to 4.9. The result extended the recovery in business conditions in the currency bloc after the outbreak of war in the Middle East halted energy supply from the region and triggered inflationary pressure that resulted in tighter monetary policy. Improvements were noted in the assessment of business over the last three months (2.4 vs 1.6 in July) and expectations on incoming demand for the next three months (10 vs 9). Meanwhile, selling price expectations rose to 14.1 from 13.7.