Euro-area consumer confidence fell to the lowest in almost three years in July, suggesting the economy may struggle to gain momentum in the current quarter.
An index of household sentiment in the 17-nation euro area declined to minus 21.6 from minus 19.8 in June, the European Commission in Brussels said in an initial estimate today. That’s the lowest since August 2009. Economists had forecast a drop to minus 20, the median of 23 estimates in a Bloomberg survey showed.
Europe’s economy is edging toward its second recession in three years after budget cuts from Spain to Ireland prompted companies to eliminate jobs and eroded consumer spending. Euro- area services and manufacturing industries probably contracted for a sixth month in July, a Bloomberg survey shows ahead of tomorrow’s release.
The commission is scheduled to publish the wider indicator of euro-area economic confidence on July 30.
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