Eurozone businesses are staying positive about future growth, even as rising costs, trade tensions, and tighter financing conditions weigh on profits, according to the ECB’s latest Survey on the Access to Finance of Enterprises (SAFE).
The survey, covering April to June 2025, found that 8% of firms reported higher turnover, while 23% remain optimistic about the next quarter. However, profit margins continue to shrink—especially among small and medium-sized enterprises—with 13% of firms noting a decline in profits.
Trade tensions, particularly with the United States, have hit exporters and manufacturers hardest. Around 30% of surveyed companies reported supply chain delays or shortages, prompting many to restructure sourcing and focus more on domestic and EU markets.
On the financial side, firms reported lower interest rates on bank loans (a net -14%), suggesting monetary easing is having some effect. At the same time, other borrowing costs and collateral demands remain elevated. Despite this, most firms saw stable loan availability and expect slight improvements in financing conditions.
Cost pressures persist but appear to be easing. Firms reported lower growth in input and wage costs, and inflation expectations for the next year fell to 2.5% from 2.9%. Longer-term inflation expectations remain anchored at 3%.