The Eurozone Economic Sentiment Indicator declined for a second consecutive month, slipping to 96.9 in October 2026 and falling short of market expectations of 97.5. Consumer confidence deteriorated to -17.9, its weakest level since May, as households grew more pessimistic about both their past and future financial situations. Inflation expectations remained high at 33.9, easing only slightly from 34.7 in September.
Sentiment also worsened across several sectors, with confidence falling among retailers (-8.0 vs. -6.5), construction firms (-5.9 vs. -5.3), and service providers (5.3 vs. 5.9). By contrast, confidence in the manufacturing sector improved, rising to -3.4 from -3.9.
Across the major Eurozone economies, sentiment declined the most in the Netherlands (-3.4 points), while Germany (-0.7) and Spain (-0.5) experienced more moderate drops. Italy registered a modest improvement (+0.8), and France remained largely unchanged (+0.1).
