ECB’s recent contacts with 67 non‑financial companies show a resilient first‑quarter business environment but rising prices and moderate wage growth. Firms reported solid sales, production and orders, especially in services, with manufacturing and construction picking up. No clear sign yet that the Middle East war has weakened demand, though some sectors noted a slow start to the year. Consumer spending remained steady, while discounters grew faster than full‑range supermarkets amid high food prices. Telecom and air‑travel firms saw strong demand, but March bookings fell due to travel concerns. Investment outlook improved, driven by AI software, cloud services and defence equipment. Employment grew modestly in services but contracted in industry, and wage growth is expected to ease from 3.5% in 2025 to about 2.9% in 2026.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
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