The November 2025 survey showed that the economic sentiment indicator in the euro area edged up only marginally to 97.0 from 96.8 in the previous month, in line with the consensus forecast and suggesting that recent improvements in services, retail trade and construction were almost entirely counterbalanced by weaker industrial sentiment.

Industry managers reported softer order books and subdued production expectations, reflecting ongoing pressures on export demand. In contrast, services confidence rose strongly, supported by better assessments of recent activity and expectations of future demand. Retail and construction also recorded clearer gains, with construction firms reporting brighter employment prospects even as labour shortages increased. Consumer confidence barely moved, held back by cautious views on household finances.

Employment expectations strengthened overall, led by retail and construction, indicating that labour markets remain resilient despite uneven economic momentum. Selling price expectations increased across all business sectors, signalling persistent inflationary pressures, particularly in services. Meanwhile, economic uncertainty eased slightly for firms, even as households reported greater concern about their financial outlook.

Overall, the latest data describe an economy finding pockets of strength while managing ongoing structural and external challenges. These updates bring the RPI to minus 19 and the RPI-P to minus 22, indicating that economic activity continues to lag expectations in the euro area.

Economic sentiment expected at 97.0 versus 96.8 in October.

Released by the European Commission, the economic sentiment index (ESI) provides a broad measure of both business and consumer sentiment. Results are available for all participating countries and aggregated to the Eurozone and European Union level. The survey is very detailed and offers information on demand, output and inflation.

The survey offers key sentiment data across the European Union and the Eurozone region. Data are available for each country and are aggregated for both the Eurozone and EU. It is conducted by the European Commission rather than Eurostat, the compiler of most other EMU data. The index is a broad measure of both business and consumer sentiment in the EU members. Because of its coverage of all the EU countries it is highly regarded in the financial markets as a good indicator of the mood of consumers and industry in each country. It is also normally a good indicator of quarterly GDP.

Confidence indicators are calculated for industry, services, construction, retail trade and consumers. In turn, they are combined into an overall composite number, the economic sentiment indicator (ESI). The data are seasonally adjusted and defined as the difference (in percentage points of total answers) between positive and negative answers. The survey also covers other areas of the economy that are not explicitly included in the ESI. In particular, responses to questions about the inflation outlook are used by the ECB as one means of measuring inflationary expectations.