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BRUSSELS: European economic confidence slumped in July at the
fastest pace since just after the September 11, 2001 attacks in the
United States, according to a European Union survey released on
Wednesday.
Adding to growing evidence of a sharp slowdown
in Europe, the European Commission’s euro-zone economic sentiment
indicator dropped to 89.5 points in July from a revised 94.8 points
the previous month.
The EU’s executive arm said that the drop was
largest month-on-month decline since October 2001 and brought the
index to its lowest point since March 2003.
The fall was also worse than economists’
expectations for a decline to 93 points, as polled by Dow Jones
Newswires.
Confidence in the economy of the broader
27-nation EU also retreated to the lowest since March 2003, tumbling
to 88.7 points in July from 94.5 in June, the survey showed.
A slump in consumer confidence drove the
weakness in both the eurozone and the EU, along with negative
sentiment in the construction sector which is struggling to cope
with retreating demand and high interest rates.
While almost all countries saw weakening
economic confidence, the drop was particularly strong in Italy and
Britain but Germany and France also saw sharp falls.
The European Commission’s separate monthly
business climate indicator for the eurozone also declined below its
long-term average, dropping to a negative 0.21 points in July from a
plus 0.13 in June.
-- AFP
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