The euro area Economic Sentiment Indicator rose +1.6 pts to 95.8 in July, while the EU ESI rose +1.0 pts to 95.3, both still below their long-term average of 100.

• The Employment Expectations Indicator remained broadly stable (euro area: +0.3 pts to 97.5; EU: -0.3 pts to 97.4).
• Industry confidence rose +0.9 pts on improved production expectations and better order book assessments.
• Services (+0.7 pts), retail trade (+0.8 pts), and consumer confidence (+0.3 pts) improved, while construction fell -0.6 pts on weaker employment expectations.
• Selling price expectations increased across sectors, especially in industry and services, with consumer inflation expectations for the next 12 months also rising.
• The Economic Uncertainty Indicator increased +1.0 pt to 17.3, with heightened uncertainty in industry and services, but declines in retail, construction, and among consumers.