The EU Economic Sentiment Indicator fell -1.7 pts to 94.5 in December, the lowest reading in 2024. Industrial sentiment fell the most, down -2.2 pts to -13.1, also a 2024 low. Consumer sentiment was weaker as well, falling -1.0 pt to -13.4, the lowest since April. Services and retail both saw minor increases in sentiment while construction saw a minor decline.

The Employment Expectations Indicator fell -1.0 pts to 98.4, also the weakest reading of the indicator in 2024. The decline in employment was evident across industries, and consumers’ unemployment expectations increased substantially, reaching the worst since late 2022.

Price expectations also jumped with most sectors noting an increase in selling price expectations, with the largest in services and construction. The index tracking consumer inflation expectations jumped 3.1 pts to 22.0, the highest since late 2022 as well.