FX.co ★ Eurozone Investor Morale Lowest since Dec 2022

The ZEW Indicator of Economic Sentiment for the euro area plunged by 11.9 points to -20.4 in April 2026, its lowest reading since December 2022 and far below market expectations of -3.6. The sharp decline reflects mounting concern over the escalating conflict in the Middle East, which is increasingly viewed as a threat to energy prices and European supply chains, heightening fears of prolonged energy shortages for businesses. In March, 44% of analysts expected economic activity to remain unchanged, 38.2% anticipated a deterioration, and 17.8% foresaw an improvement. The assessment of the current economic situation also worsened, with that index dropping 13.1 points to -43, while inflation expectations were largely unchanged at 79.