The Eurozone service-sector confidence index rose to 5.8 in August 2026 from an upwardly revised 5.1 in July, reaching its highest level in seven months and beating expectations for a decline to 4.9. The improvement extended a recovery in business conditions after the outbreak of war in the Middle East halted energy supplies from the region, fueled inflationary pressure and contributed to tighter monetary policy. Assessments of business activity over the past three months rose to 2.4 from 1.6, while expectations for incoming demand over the next three months increased to 10 from 9. Selling-price expectations also climbed to 14.1 from 13.7.