The Eurozone’s economic confidence has slowed more than anticipated this month, casting further shadows on the region’s prospects.
The Economic Sentiment Index, as released by the European Commission, dropped from 94.5 in July to 93.3, marking the fourth consecutive monthly decline and falling below the market’s expectation of 93.7.
Sub-indices including indicators for the service sector, industry, and consumer expectations also registered decreases.
So far, indicators for the Eurozone’s third quarter have been bleak, with last week’s PMI data indicating that private sector activity in the Eurozone and its top two economies might be contracting.
The data of economic weakness will provide strong evidence for dovish policymakers at the European Central Bank, potentially discouraging them from raising rates at the meeting scheduled for September 14th.
