BRUSSELS Euro zone economic sentiment declined for a third consecutive month in July and by more than expected as the mood in industry, services and amongst consumers slipped, while inflation expectations continued to fall, data showed on Friday.

The European Commission's monthly survey showed economic sentiment in the 20 countries sharing the euro fell to 94.5 points in July from 95.3 in June. Economists polled by Reuters had expected a dip to 95.0 points.

All components of the index, except retail trade, fell.

Sentiment in industry was markedly worse than expected, while services, the biggest sector of the euro zone economy, sentiment slipped to 5.7 in July against expectations of a larger drop to 5.4.

Inflation expectations among consumers fell to 4.8 points in July from 6.0 in June, the Commission survey showed, the lowest level since October 2015.

Selling price expectations among manufacturers also declined for a 10th consecutive month, to 3.4 points in July from 4.3 in June, a new 33-month low.

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(Reporting by Philip Blenkinsop; editing by Philippa Fletcher)