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European business confidence has improved since the summer, but rising energy costs and concerns over government borrowing are threatening to undermine the recovery, according to a survey published on Thursday by BusinessEurope, the continent’s largest employers’ organisation. The findings reveal a significant improvement in sentiment across manufacturing and services following a difficult first half of 2026. According to the survey reported by Reuters , the proportion of industrial respondents expressing negative sentiment fell from 62% in June to 33% in November. Among service-sector respondents, the corresponding figure declined from 50% to 30%.
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