The Economic Sentiment Indicator fell for the second consecutive month in the European Union and the Eurozone, reflecting a less favorable evolution of economic expectations.

According to the results of surveys of businesses and consumers, published by the European Commission, the indicator fell by 0,6 points, reaching 96,9 points in both economic areas. The result remains below the long-term average, defined as 100 points.

The trend signals a weakening of the overall economic outlook, although the indicator is not a direct measure of gross domestic product growth or consumer spending.

Consumer confidence declines again.

Consumer confidence also showed a negative trend in October. In the European Union, the indicator decreased by 1,2 points, to -17,3 points. In the Eurozone, it fell by 1,1 points, settling at -17,9 points.

In both cases, confidence remains below its respective historical average, highlighting household caution regarding the economic outlook.

Consumer confidence indicators reflect assessments and expectations stated by consumers, and do not automatically predict a reduction in purchases. For manufacturers and distributors, however, this evolution constitutes an important benchmark for monitoring consumer price sensitivity, spending priorities, and expectations regarding disposable income.

Job prospects improve

In contrast to the negative evolution of economic sentiment, the Employment Expectations Indicator increased in October. In the European Union, it rose 0,6 points, reaching 98,9 points. In the Eurozone, it increased by 0,7 points, to 98,2 points.

Despite the improvement, both indicators remain slightly below their respective long-term averages.

The difference between the evolution of economic sentiment and employment expectations highlights that business and consumer assessments do not necessarily evolve in the same direction.