Eurozone Economic Sentiment Index drops to 96.9 in October, marking the second consecutive month of decline

(1) The Eurozone's Economic Sentiment Indicator for October 2026 declined for the second consecutive month to 96.9, below the market expectation of 97.5. (2) Consumer confidence deteriorated to -17.9, the lowest level since May, with households becoming more pessimistic about both their past and future financial situations. (3) Meanwhile, inflation expectations remain high at 33.9, only slightly down from 34.7 in September. (4) Retailers' confidence fell from -6.5 to -8.0, construction companies from -5.3 to -5.9, and service providers from 5.9 to 5.3. (5) In contrast, manufacturers' confidence improved from -3.9 to -3.4. (6) Among major economies, economic sentiment in the Netherlands fell sharply by 3.4 points, Germany by 0.7 points, and Spain by 0.5 points. (7) Italy saw a slight improvement of 0.8 points, while France remained almost unchanged, rising by just 0.1 points.