FX.co ★ Eurozone Economic Sentiment Eases in December

The Eurozone Economic Sentiment Indicator (ESI) slightly declined to 96.7 in December 2025, following a 31-month peak of 97.1 in the previous month. This figure fell just short of market predictions of 97 and remained below its long-term average. There was a noticeable drop in confidence among service providers (down from 5.8 to 5.6), retailers (from -5.7 to -6.9), and consumers (from -12.8 to -13.1). However, sentiment showed a slight uptick in both the manufacturing sector (from -9.3 to -9.0) and construction (from -1.6 to -1.3). At the same time, inflation expectations faced renewed upward pressure, with the consumer inflation expectations index climbing by 2.4 points to 26.7, and manufacturers’ selling price expectations rising by 1 point to 10.9. Among the largest economies in the eurozone, Germany (-1.1), France (-0.9), Italy (-0.6), and Spain (-0.5) experienced declines in sentiment. Only the Netherlands observed a positive change, with sentiment increasing by 0.5 points.