Eurozone Economic Sentiment Indicator rose from a revised 97.1 to 98.4 in August, beating 97.5 consensus and moving closer to its long-term average of 100. Employment Expectations strengthened more sharply from 97.4 to 98.9. Eurozone Services Confidence increased from 5.1 to 5.8, Industry Confidence improved from -6.1 to -5.3, Retail Trade Confidence from -6.8 to -5.7, and Construction Confidence from -5.2 to -5.0. Consumer Confidence edged up from -15.9 to -15.5.
Broader EU picture was similarly constructive, with ESI rising from 97.2 to 98.2 and Employment Expectations from 97.8 to 99.0. Commission said improvement was driven by stronger confidence in industry, services and retail trade, while construction and consumer sentiment were broadly stable. Services recorded broad-based gains across past business conditions, past demand and expected demand, while stronger hiring plans in industry and services lifted employment outlook. Economic uncertainty also fell for a fourth straight month to 17.2, although consumer price expectations rose markedly.
Performance across major economies was uneven but tilted positively. Sentiment improved most in France by 2.3 points, followed by Germany at 1.3 and Italy at 0.8. Netherlands was broadly unchanged at -0.1, while Poland fell 0.5 points and Spain dropped 2.2. Overall, August survey suggests confidence recovery is becoming broader across Eurozone and EU, with services and employment expectations providing clearest support, even as industrial orders, household spending intentions and some country-level readings remain less convincing.
Data Summary
| Indicator | Previous | Latest | Consensus |
|---|---|---|---|
| Eurozone Economic Sentiment Indicator | 97.1 | 98.4 | 97.5 |
| Eurozone Employment Expectations Indicator | 97.4 | 98.9 | — |
| Eurozone Industry Confidence | -6.1 | -5.3 | -5.2 |
| Eurozone Services Confidence | 5.1 | 5.8 | 4.9 |
| Eurozone Consumer Confidence | -15.9 | -15.5 | -15.5 |
| Eurozone Retail Trade Confidence | -6.8 | -5.7 | — |
| Eurozone Construction Confidence | -5.2 | -5.0 | — |
| Eurozone Economic Uncertainty | 18.6 | 18.0 | — |
| EU Economic Sentiment Indicator | 97.2 | 98.2 | — |
| EU Employment Expectations Indicator | 97.8 | 99.0 | — |
| EU Economic Uncertainty | 17.7 | 17.2 | — |
Major-Economy Sentiment Changes
| Economy | Monthly Change |
|---|---|
| France | +2.3 pts |
| Germany | +1.3 pts |
| Italy | +0.8 pts |
| Netherlands | -0.1 pts |
| Poland | -0.5 pts |
| Spain | -2.2 pts |
Key Takeaways
- Eurozone Economic Sentiment rose from a revised 97.1 to 98.4, beating 97.5 consensus and moving closer to long-term average of 100.
- Employment Expectations strengthened from 97.4 to 98.9, showing a notable improvement in hiring outlook.
- Services Confidence increased from 5.1 to 5.8, comfortably beating 4.9 consensus.
- Industry, retail and construction sentiment also improved, while Consumer Confidence edged higher only modestly.
- EU-wide ESI rose from 97.2 to 98.2, with improvement driven by industry, services and retail trade.
- EU service-sector managers became more positive on past business conditions, past demand and expected demand.
- Economic Uncertainty declined again in both Eurozone and EU, adding to evidence that business conditions are becoming less fragile.
- Country performance remained uneven: France, Germany and Italy improved, while Spain posted a notable 2.2-point decline.
- Overall, August survey points to a broader recovery in business confidence and employment expectations, while household sentiment and parts of industrial demand remain less convincing.
