FX.co ★ Eurozone Services Sentiment Falls to 5-Year Low

The services confidence index in the Euro Area dropped to 0.9 points in April 2026, down from 4.1 in March and well below market expectations of 3.5, marking its lowest level since April 2021. Assessments of the current business situation deteriorated further (-3.4 vs -1.4 in March), while expectations for demand growth weakened sharply (3 vs 7.8). This decline aligns with reduced purchasing power caused by surging energy prices following the outbreak of war in the Middle East. As a result, expectations for employment (-5.1 vs -0.3) and inflation (17.4 vs 14.9) also worsened.