In June, Eurozone economic sentiment climbed higher, indicating that businesses and consumers are growing more optimistic about the outlook even as economic challenges persist. At the same time, companies have become more restrained in their hiring plans, underscoring a growing disparity between rising confidence and labor‑market expectations.

The Economic Sentiment Indicator (ESI) edged up to 95.0 in the euro area and to 95.1 for the EU as a whole, up from 93.7 and 93.8 respectively. Gains were recorded in industry, services, retail trade and consumer confidence, whereas construction was the sole sector that weakened.

Sentiment improved most notably in the Netherlands, Germany and Italy among the bloc’s biggest economies, while France showed little change. Industry gained from brighter production forecasts and reduced stocks of finished goods, and consumer confidence kept advancing as households grew less pessimistic about the economy and their personal finances.

Conversely, the Employment Expectations Indicator slipped to 92.2 in the eurozone and to 92.9 EU‑wide, down from 94.4 and 95.2, signaling softer hiring intentions in services, retail trade and construction.

The survey also brought some positive news on inflation. Anticipated selling prices eased across all major sectors, and consumers reported softer inflation perceptions and expectations, though both measures stayed above long‑run averages. Economic uncertainty dropped for a second straight month, indicating that firms and households are gaining confidence even while employers hold back on payroll expansion.

Indicator
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Latest

EU Economic Sentiment Indicator
93.8
95.1

Eurozone Economic Sentiment Indicator
93.7
95.0

EU Employment Expectations Indicator
95.2
92.9

Eurozone Employment Expectations Indicator
94.4
92.2

Industry Confidence

+0.6 pts

Services Confidence

+0.5 pts

Retail Trade Confidence

+1.2 pts

Consumer Confidence

+1.2 pts

Construction Confidence

-0.6 pts

Economic Uncertainty Indicator

-1.2 pts

Selling Price Expectations

Declined

Consumer Inflation Expectations

Declined

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