Euro Area Services Sentiment

The Euro Area services confidence indicator eased to 3.6 in August of 2025 from five-month high of 4.1 in the previous month, slightly below market estimates that it would drop to 3.9. The softer confidence was owed to a slowdown in the evolution of demand over the past three months (2.3 vs 4.2 in July) and expectations on the evolution of employment in the upcoming three months (1.8 vs 2.0). These were enough to offset a more optimistic outlook in demand on the next three months (7.3 vs 7.1) as the gauge on uncertainty fell (10.0 vs 12.0) as firms adapted to less pivots on trade policy between the EU and the US. Lastly, selling price expectations rose to 15.1 from 14, the highest since January.