Confidence in Eurozone Economy worsened in February

According to a survey of managers and consumers, confidence in the eurozone economy unexpectedly declined in February as attitude soured across all sectors.

According to a forecast survey released by The Wall Street Journal, the eurozone sentiment indicator, an overall measure of business and consumer confidence, defied the tiny gain projected by experts, sliding backward to 95.4 on Wednesday, according to data from the European Commission. It lowers the indicator’s long-term average—represented by a value of 100—even further.

Consumer confidence improved a little over the month, in line with expectations, but all other economic sectors showed darker moods.

According to the report, industry confidence declined further, contrary to forecasts, and it also got worse in the retail, construction, and services sectors.

After the region ended 2023 in stagnation, the reading will dash expectations for a robust recovery in the 20-member euro area at the start of the year. After a spike in inflation over the past few years, many economists are counting on consumer spending to sustain GDP as inflation declines to target levels. In contrast, industrial output may continue to be weak due to rising interest rates and declining demand in important export markets.