Brussels:Economic sentiment in the European Union and the eurozone declined for the second consecutive month in October, as revealed by European Commission survey data released on Thursday.

According to Anadolu Agency – English, the Economic Sentiment Indicator fell by 0.6 points from September to 96.9 in both the 27-member bloc and the single currency area. The downturn was largely due to deteriorating confidence across all surveyed sectors, except for industry, which saw a slight improvement.

Among the largest EU economies, the sentiment experienced a sharp decline in the Netherlands by 3.4 points, and minor decreases in Germany by 0.7 points and Spain by 0.5 points. Conversely, Italy saw a rise of 0.8 points, while sentiment remained broadly stable in Poland and France.

Industry confidence edged up by 0.3 points, supported by improved assessments of finished product stocks and marked enhancements in past production and export order books. Services confidence, however, declined by 0.7 points as managers expressed more negative views on past demand and current business situations, despite brighter demand expectations for the upcoming three months.

Consumer confidence fell by 1.2 points, marking its second straight monthly drop, as households reported weaker past and expected financial situations and reduced intentions to make major purchases. Retail trade confidence dropped by 1.7 points, mainly reflecting negative assessments of the past business situation and deteriorating stock volumes.

Construction confidence decreased by 0.9 points, influenced by significant deterioration in builders' employment expectations despite better order book assessments. In contrast, the Employment Expectations Indicator improved across both areas, climbing 0.6 points to 98.9 in the EU and 0.7 points to 98.2 in the eurozone, driven by stronger hiring plans in retail and industry.

Selling price expectations rose considerably in industry, retail trade, construction, and services, climbing further above their long-term averages across all four sectors. The Economic Uncertainty Indicator increased by 1.7 points to 19.8, as businesses reported greater uncertainty about their outlook, and consumer financial uncertainty reached its highest level since April 2025.