Sentiment in Europe deteriorated further in March, with the Economic Sentiment Indicator falling from February to 96.6 in the Eurozone and to 96.7 in the EU, both moving further below the long-term average of 100. The Employment Expectations Indicator also declined to 97.3 and 96.4 respectively.
The decline in sentiment was driven primarily by a sharp drop in confidence among consumers and retailers, with services also contributing modestly to the downside. Construction offered a partial offset with some improvement, while industrial confidence remained broadly stable.
Across major economies, the deterioration was uneven but broadly negative. France (-3.7) and Spain (-2.4) saw the largest declines. The Netherlands (-1.5) and Italy (-1.3) also recorded notable drops. Germany and Poland were relatively stable, but not strong enough to offset broader regional weakness.
