Euro area consumers became more pessimistic about the economic outlook in March 2026, while inflation expectations rose significantly, according to the ECB’s latest Consumer Expectations Survey.
Consumers now expect higher inflation both in the short and medium term, with one-year-ahead expectations jumping to 4.0% and three-year expectations to 3.0%. At the same time, uncertainty about inflation increased.
Income growth expectations remained unchanged, but households anticipate higher spending in the coming year, reflecting rising prices and consumption pressures. However, economic sentiment worsened: expectations for economic growth turned more negative, and the expected unemployment rate increased, signaling concerns about the labour market.
In the housing market, consumers expect slightly stronger price growth and higher mortgage interest rates over the next 12 months. Access to credit is also perceived to be tightening, with more households reporting and expecting stricter borrowing conditions.
Overall, the survey points to rising inflation concerns, weakening economic confidence, and tighter financial conditions among euro area households.
