Euro Area Services Sentiment

The Euro Area services confidence indicator rose to 2.9 in June of 2025 from a revised 1.8 in the previous month, the highest since February, and firmly above market expectations of 1.6 to reflect a slight recovery in services sentiment. The result was in line with other surveys that see a higher degree of optimism in the sector, supported by pledges of greater investment from Eurozone members and softer concerns of trade barriers with the US. The evolution of demand over the prior three months showed improvement (3.5 vs 1.8 in May), lifting the overall assessment of business situation (0 vs -1.7). Still, firms remained cautious on the future, as expectations of demand over the next three month softened (5.4 vs 5.1).