Euro Area consumer confidence was at -19 in May 2026, up from an over three-year low of -20.6 in April and confirming preliminary estimates. However, it remains firmly in negative territory, with inflationary pressures stemming from the Middle East conflict sustaining expectations of potential rate hikes. In the broader European Union, consumer sentiment also improved to -18.2 from -19.9 the month before, as consumers turned less pessimistic regarding their future household financial situation, major purchases, and the general economic outlook, while their assessment of past financial conditions remained broadly stable.