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2026.06.2909:12:00UTC+00Eurozone Economic Sentiment Improves for Second Month

The Eurozone Economic Sentiment Indicator (ESI) rose for the second consecutive month to 95.0 in June 2026, extending its recovery from April’s five-year low and beating market expectations of 94.3. The uptick came as businesses and households continued to assess the economic fallout from the Iran war, against the backdrop of ongoing US–Iran peace talks.

Sector-level confidence presented a mixed picture. Sentiment improved slightly among service providers (3.2 vs. 2.6 in May), retailers (-9.7 vs. -10.9), consumers (-17.7 vs. -19.0), and manufacturers (-7.7 vs. -7.9), while confidence in the construction sector deteriorated (-4.5 vs. -3.9).

Inflation expectations continued to ease. Consumer expectations for inflation fell to 34.0 from 40.4, and manufacturers’ selling price expectations declined to 22.3 from 26.7.

Across the major Eurozone economies, the ESI rose markedly in the Netherlands (+4.1), Germany (+1.7), and Italy (+1.3), and edged up in Spain (+0.7). In France, sentiment remained broadly unchanged (-0.2).

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