In January 2025, the Eurozone’s Economic Sentiment Indicator (ESI) climbed to 95.2, rebounding from the four-year low of 93.7 recorded in December 2024 and surpassing market forecasts of 94.1.
Eurozone sentiment rebounds in January
This improvement suggests that the downturn in the region’s economic activity may have reached its lowest point.
The mood among industrial goods producers became slightly less pessimistic, with sentiment rising to -12.9 from -14.1 in the previous month, driven by a renewed sense of optimism regarding future production. Meanwhile, confidence surged in the services sector, where sentiment jumped to 6.9 from 6, reflecting stronger-than-expected demand in the previous quarter.
However, the retail sector showed signs of deepening concern, as sentiment declined to -5 from -4.5, highlighting that consumer spending remained sluggish. Despite these mixed signals across industries, the overall uptick in economic sentiment provides a tentative indication that business confidence is beginning to stabilize.
