Euro Area Services Sentiment

The services sentiment indicator in the Eurozone fell to 6.2 in February of 2025 from 6.7 the downwardly revised 6.7 in the previous month, firmly below market expectations of 6.8. The slowdown was owed to a drop in expectations of client demand in the upcoming three months (8.8 vs 9.3 in January), the lowest in the lowest in at least one year, amid a sharp increase in the uncertainty gauge (13.2 vs 11.9), likely owed to repeated tariff threats by US President Trump. In the meantime, selling price expectations softened (12.7 vs 15.7), as did expectations of employment in the next three months (0.6 vs 2.7), an over one year low. Regarding the prior three months, client demand edged higher (8.8 vs 8.6), but the gauge measuring overall business performance dropped (1.1 vs 2.1).