Economic sentiment across the European Union fell sharply in April, with consumers and retailers driving the downturn amid mounting concerns over household finances and business outlook, the European Commission said on Tuesday. The Economic Sentiment Indicator (ESI) dropped by 1.4 points in both the EU and euro area, falling to 94.4 and 93.6, respectively, well below long-term averages. The Employment Expectations Indicator (EEI) also declined in the EU to 96.9, though it held steady in the euro area. The deterioration was led by a marked drop in consumer confidence, which saw declines across all components, particularly expectations about the wider economy. Sentiment also weakened in retail and services, while confidence in industry and construction remained broadly stable. Among major economies, the Netherlands and Italy saw the steepest falls, while Germany and Spain posted slight gains. France and Poland remained flat. Price expectations for consumers rose further, continuing an upward trend, while business uncertainty surged across sectors, with the Commission's Economic Uncertainty Indicator hitting a 20.4 reading, its highest level in over two years. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
