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28.08.202509:30:17UTC+00Euro Area Services Sentiment Eases

The Euro Area services confidence indicator declined to 3.6 in August 2025, down from a five-month high of 4.1 in July, and came in slightly below market expectations, which had predicted a drop to 3.9. This decrease in confidence was primarily attributed to a deceleration in demand growth over the past three months, which fell to 2.3 from 4.2 in July, and lower expectations for employment growth in the upcoming three months, which decreased to 1.8 from 2.0. These factors outweighed a marginally more positive outlook for demand over the next three months, which rose to 7.3 from 7.1, as the measure of uncertainty decreased to 10.0 from 12.0, indicating firms are adjusting to fewer changes in trade policies between the EU and the US. Finally, expectations for selling prices increased to 15.1 from 14, marking the highest level since January.

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