FX.co ★ Eurozone Services Sentiment Improves to 2-Year High

In January 2026, the services confidence index in the Euro Area increased by 1.4 points compared to the previous month, reaching 7.2. This marks the highest level of confidence in two years and surpasses market expectations of a more modest rise to 6. Service providers indicated an improvement in business performance over the last three months (with the index rising to 1 from -0.2 in December 2025) and a more favorable outlook for demand (increasing to 9.2 from 6.2). This led to a slight enhancement in the expectations for demand (nudging up to 11.4 from 11.3) and employment (moving to 1 from -0.2) over the coming three months. Meanwhile, expectations for selling prices have decreased slightly for the first time since September, moving to 14.1 from 14.5.