Euro area consumers turned more pessimistic on inflation and growth in March 2026, even as spending expectations strengthened, according to the European Central Bank’s (ECB) latest Consumer Expectations Survey.

Median perceived inflation over the past 12 months rose to 3.5 per cent in March from 3.0 per cent in February. Short-term inflation expectations increased sharply, with one-year ahead expectations climbing to 4 per cent from 2.5 per cent, while three-year expectations rose to 3 per cent from 2.5 per cent. Longer-term expectations edged up slightly to 2.4 per cent from 2.3 per cent, ECB said in a press release.

Euro area consumers grew more pessimistic in March 2026 as inflation expectations rose, with one-year ahead forecasts reaching 4 per cent, as per ECB.
Spending expectations strengthened, while income outlook remained unchanged.
Growth expectations fell to -2.1 per cent and unemployment expectations increased.
Consumers also expected higher house prices and mortgage rates, signalling a cautious outlook.

Across income groups, lower-income households continued to report slightly higher inflation perceptions and expectations than higher-income groups, although the overall trend of rising expectations was broadly consistent. Younger respondents reported lower inflation expectations than older cohorts.

Consumers’ income outlook remained subdued. Expected nominal income growth over the next 12 months was unchanged at 1.2 per cent. However, spending expectations strengthened, with expected spending growth rising to 4.1 per cent from 3.5 per cent, the highest level since May 2023. Perceived spending growth over the past year also increased to 5.1 per cent.

Economic sentiment weakened further. Growth expectations for the next 12 months fell deeper into negative territory at -2.1 per cent, compared with -0.9 per cent in February. At the same time, the expected unemployment rate 12 months ahead rose to 11.3 per cent from 10.8 per cent, with lower-income households anticipating higher joblessness than higher-income groups.

The ECB said the results point to a more cautious consumer outlook, marked by rising inflation concerns, resilient spending expectations, and a deteriorating view of economic growth and labour market conditions.

Fibre2Fashion News Desk (SG)

The Vibrant Gujarat Regional Conference (VGRC), scheduled to be held on May 1-2 in Surat, is expected to create direct connections between global buyers and local manufacturers, facilitate technology transfer and draw foreign direct investment (FDI) into key sectors, including textiles.

State officials are hopeful of the conference helping accelerate the industrial development of South Gujarat by attracting large-scale investments.

The Vibrant Gujarat Regional Conference, scheduled to be held on May 1-2 in Surat, is expected to create direct connections between global buyers and local manufacturers, facilitate technology transfer and draw FDI into key sectors, including textiles.
Alongside the conference, the Vibrant Gujarat Regional Exhibition (VGRE) will also be held at the same venue from May 1 to 5.

A new state textile policy implemented in 2024 offers capital subsidies ranging from 10 to 35 per cent for new units and aims at expanding employment opportunities through value addition across the supply chain. The conference is expected to align state policy initiatives with industry requirements.

Alongside the conference, the Vibrant Gujarat Regional Exhibition (VGRE) will also be held at the same venue from May 1 to 5. The exhibition will also showcase the achievements of micro, small and medium enterprises, and handicraft and cottage industries, an official release said.

The last such conference was organised in Rajkot.

Fibre2Fashion News Desk (DS)

India signed the India–New Zealand Free Trade Agreement on ** April **** at Bharat Mandapam, New Delhi, eliminating tariffs on *** per cent of New Zealand’s *,*** tariff lines from Day * of entry into force. For Indian textile and apparel exporters, the deal resolves a structural anomaly: until this week, India was the only major textile supplier still paying MFN duty in New Zealand, while China (NZ–China FTA, ****), Bangladesh (LDC scheme), Vietnam and Indonesia (CPTPP and RCEP) all entered duty-free. Concluded in a record nine months after Prime Ministers Modi and Luxon launched negotiations in March ****, the pact is India’s seventh FTA in three and a half years, anchoring a textile-trade diversification strategy targeting USD *** billion in exports by ****.

TexPro trade intelligence reveals a highly asymmetric and complementary bilateral flow. India exports a diversified $*** million textile basket to New Zealand, while importing nearly $** million, of which **.* per cent is raw wool (HS **). This is not competition; it is a fibre-to-finished-goods value chain waiting to be formalised.