The EU Economic Sentiment Indicator (ESI) edged down in August 2025 (EU: -0.3 pts to 94.9; euro area: -0.5 pts to 95.2), while the Employment Expectations Indicator (EEI) improved slightly (EU: +0.6 pts to 98.1; euro area: +0.3 pts to 97.8), with both indicators below their long-term averages.

• Spain saw the sharpest ESI drop (-2.6 pts), followed by Germany (-1.0) and Italy (-1.0), while the Netherlands (+3.5) and Poland (+0.5) posted gains; France was stable (+0.1).

• Industry confidence fell -0.2 pts as weaker production expectations outweighed stable order books; managers’ export order books also worsened.

• Services confidence slipped -0.3 pts on lower past demand assessments, partly offset by improved future demand expectations.

• Consumer confidence declined -0.3 pts, reflecting weaker household financial outlooks, though intentions for major purchases improved.

• Retail trade confidence inched up +0.2 pts, while construction eased -0.3 pts, with fewer citing insufficient demand but more pointing to labor shortages.

• Selling price expectations fell in industry, retail, and construction, but rose again in services; consumer inflation expectations for the next 12 months increased.

• The Economic Uncertainty Indicator eased -0.4 pts to 16.9, with lower uncertainty in services, industry, and retail, but slight increases in construction and among consumers.