FX.co ★ Eurozone Economic Sentiment Improves More Than Expected

The Economic Sentiment Indicator (ESI) for the Eurozone rose to 96.9 in July 2026, up from an upwardly revised 95.4 in June and above the median market forecast of 96. This was the highest level since February, indicating improved sentiment driven by a temporary easing in energy prices and borrowing costs following the short-lived truce in the Middle East conflict. Confidence among services providers strengthened, with the services indicator increasing to 4.7 from an upwardly revised 4.2. At the same time, industrial pessimism eased, with the industry confidence balance improving to -6.1 from -7.5. Among the largest economies in the Euro Area, the ESI increased in Germany (97.2 vs. 91.6), France (95.9 vs. 93.5), Italy (99.6 vs. 99.2), and Spain (104.3 vs. 103.5).