Eurozone Economic Sentiment Slumps as Confidence Drops Across Key Sectors

Eurozone and EU economic sentiment fell sharply in April, driven by a collapse in consumer confidence and weaker services and retail sentiment, while construction and industry held up. The EU ESI fell to 93.5 (from 96.4) and the Eurozone ESI to 93.0 (from 96.2), both well below the 100 long-term average. Employment expectations weakened materially, underscoring rising labor-market concerns. The downturn was broad-based — Germany led with a 3.9-point drop — signalling softer demand and growth risks for the euro area. Financial markets are likely to interpret the data as a negative near-term shock for the euro and risk-sensitive assets, potentially keeping EURUSD under pressure and complicating ECB policy considerations if the trend persists.