Europe: sentiment slips in October while hiring intentions edge up
· BehindLines newsroom
Confidence among European businesses and households weakened for a second month running in October 2026. According to European Commission surveys released on 29 October, the Economic Sentiment Indicator lost 0.6 points to 96.9 in both the European Union and the euro area. The picture is mixed, though: employment expectations improved.
A falling headline index
The Commission reports that sentiment fell in both areas, to 96.9 points. Turkey's Anadolu agency, which details the survey, says the drop came mainly from consumers (down 1.2 points), retail trade (down 1.7), construction (down 0.9) and services (down 0.7). Industry was the exception, up 0.3 points, helped by better assessments of finished-goods stocks, past output and export orders.
Households more worried
The flash consumer confidence reading fell 1.2 points to minus 17.3 in the Union and 1.1 points to minus 17.9 in the euro area. The Commission says it moved further below its long-term average. According to Anadolu, households judged their finances weaker and planned fewer big purchases. The economic uncertainty indicator jumped 1.7 points to 19.8, and consumers' financial uncertainty reached its highest level since April 2025.
More hiring, higher expected prices
Running against the trend, the employment expectations indicator gained 0.6 points to 98.9 in the Union and 0.7 points to 98.2 in the euro area, thanks to firmer hiring plans in retail and industry. Anadolu also notes that selling-price expectations rose markedly in industry, retail, construction and services, and stay above their long-term averages in all four sectors.
Gaps between countries
By country, the Netherlands saw the sharpest fall in sentiment, down 3.4 points, ahead of Germany (down 0.7) and Spain (down 0.5). Italy gained 0.8 points, while Poland and France were broadly stable, according to Anadolu.