Eurozone Economic Sentiment Drops to 97.9 in September as Inflation Expectations Rebound

Eurozone economic sentiment deteriorated in September, with the headline Economic Sentiment Indicator falling to 97.9 from 98.4, missing expectations of 99.0 and remaining beneath its long-term average. While business confidence showed resilience as industrial sentiment rose to -3.8 and services sentiment reached 6.1, consumer confidence dropped to -16.5 and employment expectations weakened to 97.5. At the same time, selling price expectations jumped to 20.3 from 16.9 and consumer inflation expectations climbed to 35.2, complicating the policy backdrop for the European Central Bank.