The ZEW Indicator of Economic Sentiment for the euro area declined by 7.3 points to 18.5 in October 2026, its lowest reading in four months and below market expectations of 23.6. The drop reflects waning investor confidence amid ongoing uncertainty surrounding the Iran conflict and limited prospects for a resolution.
Survey results showed that 67.1% of analysts expected economic activity to remain unchanged in the coming months, while 25.7% anticipated an improvement and 7.2% forecast a deterioration. Assessments of the current economic situation also weakened, with the corresponding index slipping 0.9 points to -14.8. At the same time, inflation expectations declined markedly, falling 26.4 points to 4.7.