2025.08.2809:13:26UTC+00Euro Area Economic Sentiment Unexpectedly Worsens

In August 2025, the Economic Sentiment Indicator (ESI) for the Euro Area experienced a slight decline, falling 0.5 points to 95.2, falling short of market predictions set at 96. This decline was primarily attributed to decreased confidence in the service sector, which dropped from 4.1 to 3.6, construction, which fell from -3.1 to -3.5, and among consumers, with a decrease from -14.7 to -15.5. Meanwhile, there were slight recoveries noted in the retail trade, improving from -6.6 to -6.5, and in the industrial sector, where sentiment increased from -10.5 to -10.3.

The ESI saw a notable decrease in Spain, falling by 2.6 points, followed by more moderate declines in Germany and Italy, both experiencing a 1.0 point drop. Conversely, there was a significant rise in the indicator in The Netherlands, where it climbed by 3.5 points, and a modest increase in Poland by 0.5 points. France's indicator remained relatively stable, with a minor uptick of 0.1 points.