Finance
Euro zone firms see deteriorating profits, ECB survey shows
Published by Global Banking and Finance Review
Posted on February 2, 2026
1 min readLast updated: February 2, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 2, 2026
1 min readLast updated: February 2, 2026
Euro zone firms foresee revenue growth but face declining profits, as per the ECB survey. Inflation expectations slightly increased, with stable pricing outlook.
FRANKFURT, Feb 2 (Reuters) - Euro zone firms expect revenues to keep rising this quarter but profitability is taking a hit, the European Central Bank's quarterly Survey on the Access to Finance of Enterprises showed on Monday.
A net 18% of surveyed firms remained optimistic about turnover developments in the next quarter but a net 10% of them are reporting lower profits, the ECB said in a statement.
On prices, firms' expectations did not change much. They expected their selling prices to rise by 2.9% on average over the next 12 months, the same as three months earlier, while inflation expectations for the year ahead rose to 2.6% from 2.5%.
(Reporting by Balazs Koranyi, Editing by Aidan Lewis)
Revenue growth refers to the increase in a company's sales over a specific period, indicating improved business performance and market demand.
Profitability is a measure of a company's ability to generate profit relative to its revenue, expenses, and assets.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Corporate profit is the financial gain a company makes after subtracting all expenses from its total revenue.
A financial survey collects data and insights from businesses to assess their financial conditions, expectations, and challenges.
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