The Eurozone Economic Sentiment Indicator rose for a fourth straight month in August 2026, reaching 98.4, up from a revised 97.1 in July and beating market expectations of 97.5. This was the highest level since January, reflecting continued optimism among businesses and consumers about a potential resolution to the six‑month US–Iran war.
Confidence improved across all surveyed sectors. Sentiment strengthened among:
- Manufacturers (to -5.3 from -6.1)
- Service providers (to 5.8 from 5.1)
- Consumers (to -15.5 from -15.9)
- Retailers (to -5.7 from -6.8)
- Construction firms (to -5.0 from -5.2)
Inflation expectations were mixed. Consumer inflation expectations rose to 33.0 from 30.4, while manufacturers’ selling-price expectations eased to 16.4 from 17.8.
Among the major Eurozone economies, sentiment strengthened in France (+2.3), Germany (+1.3) and Italy (+0.8), was broadly unchanged in the Netherlands (-0.1), and deteriorated in Spain (-2.2).
