Eurozone Business Climate Index, Consumer Confidence Index

■ Although the Eurozone economy has continued to grow, the rate of growth slowed significantly in the second quarter, with exports declining after an earlier increase.  

■ Business sentiment and price expectations have both rebounded, and service sector inflation is trending downward. 

 
 
    The preliminary estimate of Eurozone real GDP growth for the April-June quarter (0.1% quarter-over-quarter) marked six consecutive quarters of positive growth, but the pace has slowed considerably compared to the January-March quarter. While details remain uncertain, monthly data suggest that exports, which had increased in the January-March period due to an earlier head start before US tariffs were imposed, declined this quarter—likely due to a pullback after the previous rebound. 

 
    July's Eurozone Harmonized Index of Consumer Prices (HICP) (preliminary estimate, up 2.0% year-on-year) and the core HICP (excluding food, energy, alcohol, and tobacco) (up 2.3% year-on-year) remained roughly unchanged from the previous month. Although commodity prices have accelerated, the increase in service prices has slowed to its lowest level since March 2022, indicating a downward trend in service sector inflation. 

 
    The Eurozone Business and Consumer Survey for July showed that the business confidence index (95.8, up 1.6 points from the previous month) reached a five-month high. Across different sectors, the business confidence index for all major industries except construction rose, signaling improving business sentiment. Regarding price-related indicators, the business price expectations index increased across all significant sectors, and the consumer price trend index for the next 12 months also went up.