Euro Area Sentiment Falls as Confidence Weakens Across Sectors

Euro-area economic sentiment fell to 93 in April from 96.2 in March, the third straight monthly decline, driven by sharp drops in consumer and services confidence and a small deterioration in manufacturing. Consumer confidence plunged to -20.6 from -16.4 (the weakest since Dec. 2022), services dipped to 0.9 from 4.1, and the economic-uncertainty indicator rose to 23.6 from 20.6. ECB President Christine Lagarde warned that the Iran war and potential energy-price spillovers are adding uncertainty for policy. With first-quarter GDP, preliminary April inflation and the ECB rate decision due imminently, the data raise downside risks to growth and could pressure European equity benchmarks (Europe 50) and weigh on ECB rate-path expectations.