EU consumer confidence falls to its lowest level since late 2023

EU consumer confidence fell sharply in March 2026, reaching its lowest level since October 2023, according to a flash estimate published on March 23 by DG ECFIN (the Directorate-General for Economic and Financial Affairs of the European Commission). The consumer confidence indicator (CCI) declined by 3.4 percentage points (pps) in the EU versus February and by 4.0 pps in the euro area, to -15.2 and -16.3 points respectively. Both readings are below long-term averages.

The estimate is based on survey data collected between March 1 and 22 across all 27 EU member states and the 21 euro area economies.

The drop unwinds a gradual improvement in household sentiment seen through much of 2024 and early 2025. The Commission is due to publish the full Business and Consumer Survey on March 30, 2026, including the Economic Sentiment Indicator (ESI) and sector confidence measures for manufacturing, services and retail trade.

Two-year low raises fresh demand questions for discretionary spending

For sporting goods brands and retailers, weaker household sentiment can translate into greater caution on non-essential purchases, such as performance footwear, premium apparel and outdoor equipment. The euro area reading of -16.3 points signals a deterioration in consumer outlook, even though the CCI is not a direct measure of sales.

The latest result matches the trough seen in October 2023, when high inflation and elevated interest rates weighed on household expectations. In early 2026, inflation has eased and the European Central Bank (ECB) has cut rates, but consumer sentiment has been hit by renewed uncertainty, including geopolitical risks and volatile energy prices.

Pricing and promotions move further into focus

A more cautious consumer typically shifts demand toward value-led purchases. For the sector, that can mean longer replacement cycles for higher-ticket items, stronger demand for mid-priced and own-label products at retail, and added pressure on brands that have relied on premium price increases for growth. Retailers may also face a tougher balance between maintaining sell-through and protecting full-price positioning and margins.

As a sentiment indicator, the CCI is most useful as an early signal of changes in household confidence that can precede spending shifts by one to two quarters. Companies planning spring and summer 2026 ranges and open-to-buy budgets are likely to monitor upcoming survey releases for confirmation.