FX.co ★ Eurozone Economic Sentiment Falls to Lowest Since 2020

The Eurozone Economic Sentiment Indicator (ESI) declined for the third consecutive month, falling to 93.0 in April 2026—its lowest reading since November 2020 and below market expectations of 95.2. The drop underscores mounting concerns about the economic outlook, largely attributed to the escalating war in Iran. Sentiment deteriorated across all surveyed sectors, with the steepest declines recorded among consumers (-20.6 vs. -16.4 in March), service providers (0.9 vs. 4.1), and retailers (-9.9 vs. -7.6). Confidence also weakened in manufacturing (-7.7 vs. -7.0) and construction (-2.4 vs. -2.1). Among the largest EU economies, the ESI fell sharply in Germany (-3.9), France (-3.0), Italy (-2.8), and the Netherlands (-2.5), while Spain posted a more moderate decrease (-0.9).