The economic sentiment indicator (ESI) in the Euro Area edged down to 94 in June 2025 from 94.8 in May and defeating market expectations of a rise to 95.1. The decline was primarily driven by reduced confidence in the industry sector (-12 vs -10.4), with declined seen in managers’ assessments of the current level of order books, stocks of finished products, and production expectations. Confidence was also weaker among retailers (-7.5 vs -7.2) and consumers (-15.3 vs -15.1). On the other hand, an improvement was seen for service providers (2.9 vs 1.8) and constructors (-2.8 vs -3.5). Among the largest EU economies, the ESI dropped most significantly in France (89.6 vs 93), followed by Spain (102 vs 103.4) and Germany (90.7 vs 91.5). Conversely, the ESI increased in Poland (101.4 vs 100.4) and remained broadly stable in Italy (98.9 vs 98.7) and the Netherlands (97.1 vs 96.9).
