European Employers Turn More Upbeat as Negative Industry Assessments Fall to 33%

European employers are more optimistic about conditions in industry and services, with the share of federations giving a negative assessment of industry falling from 62% in June to 33% in November. Inflation concerns have nevertheless intensified as eurozone price growth reached 4% in October.

By Adam Ujazdowski. Originally published in Polish on November 12, 2026, at 08:50:25 UTC.

The findings come from the latest twice-yearly survey by BusinessEurope, which brings together 42 national employer federations representing about 25 million businesses. The responses reflect the federations’ assessments, rather than a survey conducted directly among companies.

Negative assessments of industry fall by 29 percentage points

Industry recorded the largest improvement: the proportion of participating federations reporting poor conditions fell by 29 percentage points between June and November. In services, negative assessments declined from 50% to 30%.

Investment expectations also improved, particularly in industry. At the same time, forecasts for investment growth in 2026 were revised down.

Eurozone inflation reaches 4%

Despite the improvement in business conditions, more employer organisations are worried about inflation. Almost half of respondents reported being very concerned about rising prices in November, compared with 40% in June. A nearly equally large group expressed moderate concern.

Eurozone inflation rose to 4% in October, its highest level in three years. Energy prices increased by 20%, while higher food prices added to inflationary pressure.

Rising energy costs linked to the US war with Iran contributed to the acceleration. Higher commodity prices are particularly consequential for Europe’s economy, which imports most of the energy it uses.

Employers question fiscal policy

More than half of the federations surveyed in November considered their country’s fiscal policy too expansionary. They pointed to rising public debt, higher debt-servicing costs and delays in reducing budget deficits.

BusinessEurope warns that this combination leaves some EU countries more vulnerable to financial difficulties. Markets are scrutinising national public finances more closely, pushing up borrowing costs in countries including France.

The federations were much more positive about the European Central Bank’s monetary policy. An overwhelming majority considered its current stance appropriate, even though inflation exceeds the bank’s 2% target.