FX.co ★ Euro Area Services Sentiment Deteriorates

The Euro Area services confidence index declined by 1.8 points in February 2026 to 5, down from the previous month and well below market expectations of a rise to 7.5. This marked the weakest level of confidence in four months. Firms lowered their expectations for demand over the next three months (9.8 vs 11.1 in January), in line with a moderation in employment prospects for the same period (0.2 vs 1.2). The weaker outlook coincided with a deterioration in reported demand over the past three months (5.7 vs 8.8), while assessments of the current business situation turned negative (-0.5 vs 0.5). Meanwhile, selling price expectations eased for a second consecutive month (13.9 vs 14.1).