The Eurozone Economic Sentiment Indicator rose for a fourth consecutive month to 98.4 in August 2026, up from a revised 97.1 in July and above market expectations of 97.5. It was the highest reading since January, as businesses and consumers remained hopeful of a resolution to the six-month-long US-Iran war. Confidence improved across all sectors, with sentiment strengthening among manufacturers (-5.3 vs. -6.1), service providers (5.8 vs. 5.1), consumers (-15.5 vs. -15.9), retailers (-5.7 vs. -6.8) and constructors (-5.0 vs. -5.2). Inflation expectations were mixed: consumer expectations rose to 33.0 from 30.4, while manufacturers’ selling-price expectations eased to 16.4 from 17.8. Among the major economies, sentiment improved in France (+2.3), Germany (+1.3) and Italy (+0.8), was broadly stable in the Netherlands (-0.1), and declined in Spain (-2.2).