According to the European Commission, the economic sentiment indicator in the euro area fell to 97.9 in September 2026, down from 98.4 in August, below market expectations, which were projecting 99.0. This marks the first drop in sentiment since April, with consumers becoming more concerned about higher oil prices and the stalemate in negotiations aimed at ending the six-month war between the United States and Iran.
Consumer confidence deteriorated, dropping from -15.5 to -16.5, while inflation expectations rose from 33.0 to 35.2.
Sentiment remained broadly stable in retail trade (-6.4 versus -6.3) and in construction (-5.0 versus -5.0). In the manufacturing industry, confidence, however, improved, rising from -5.0 to -3.8, despite an increase in expectations regarding selling prices (20.3 versus 16.9).
Sentiment in the services sector also strengthened, rising from 5.6 to 6.1.
Among the euro area’s major economies, sentiment deteriorated markedly in France (-1.7) and, to a lesser extent, in Italy (-0.8). It, by contrast, advanced in Spain (+3.4), in Germany (+0.6) and in the Netherlands (+0.5).
