EU economic sentiment weakens in October for 2nd consecutive month

Economic sentiment in the European Union and the eurozone declined for the second consecutive month in October, according to European Commission survey data released on Thursday.

The Economic Sentiment Indicator fell by 0.6 points from September to 96.9 in both the 27-member bloc and the single currency area.

The downturn was driven by deteriorating confidence across all surveyed sectors except industry, which saw a marginal improvement.

Among the largest EU economies, sentiment dropped sharply in the Netherlands by 3.4 points, edged down in Germany by 0.7 points and in Spain by 0.5 points, while rising 0.8 points in Italy and remaining broadly stable in Poland and France.

Industry confidence edged up 0.3 points, supported by better assessments of finished product stocks alongside marked improvements in past production and export order books.

Services confidence declined 0.7 points as managers expressed more negative views on past demand and current business situations, despite brighter demand expectations for the next three months.

Consumer confidence fell 1.2 points, marking its second straight monthly drop, as households reported weaker past and expected financial situations and cut back on intentions to make major purchases.

Retail trade confidence dropped 1.7 points, mainly reflecting negative assessments of the past business situation and deteriorating stock volumes.

Construction confidence decreased 0.9 points, weighed down by significant deterioration in builders' employment expectations despite better order book assessments.

In contrast, the Employment Expectations Indicator improved across both areas, climbing 0.6 points to 98.9 in the EU and 0.7 points to 98.2 in the eurozone on stronger hiring plans in retail and industry.

Selling price expectations rose considerably in industry, retail trade, construction and services, climbing further above their long-term averages across all four sectors.

The Economic Uncertainty Indicator jumped 1.7 points to 19.8, as businesses reported greater uncertainty about their outlook and consumer financial uncertainty reached its highest level since April 2025.