European Leading Indicators | Inflation, investor confidence & inbound capital

Here we look at the European leading indicators in the world of economics.

For in-depth analysis into commodities, trade, equities and more with a focus on Europe

Key Insights:

• Disinflation in the Eurozone continued in January, with headline inflation easing to 1.7%, down from 1.9% in December. Price pressures remain uneven across member states, ranging from 0.3% in France to 2.6% in Ireland. At its February meeting, the ECB held interest rates steady, noting modest but steady Eurozone GDP growth.
  
  

• The Sentix index, a barometer of investor confidence and economic expectations in the Eurozone, climbed to 4.2 in February from -1.8 in January, marking a third consecutive monthly rise and the strongest reading in seven months, signalling improving sentiment despite global uncertainty. Investors are notably more optimistic about the German economy, where the index has reached its highest level since July 2025.

• Cross‑border investment into European (excl. UK) commercial real estate reached €70bn in 2025, up 7% y/y, according to MSCI RCA. The increase was supported by a renewed inflow of US capital in the second half of the year, the strongest H2 figure since 2021. Momentum has carried into 2026, with January inbound capital totalling €4.7bn, roughly in line with early-2025 levels.