Euro zone confidence hits 15-year low

Source: Agencies  |   2008-10-31  |     NEWSPAPER EDITION

BUSINESS and consumer confidence in the 15 nations that share the euro fell to a 15-year low in October, the European Commission said yesterday, as a credit crunch hits consumer spending and forces companies toshed jobs.

The survey said shoppers are far more worried about the economy ?? meaning they are even less likely to spend heavily in coming months as they fear losing their jobs.

Consumer confidence hit its lowest level since 1993. Industry and construction also dropped but still remain above their worst-ever level recorded during the early 1990s downturn.

The Europe Union's economic sentiment indicator for the euro area dropped to 80.4 in October from 87.5 a month earlier. It measures confidence among consumers and business sectors like industry, services, retail and construction.

The EU survey said the Dutch became far more pessimistic about the economy in the months ahead, while France, Italy and Germany were also more gloomy.

Consumers across the 27-nation European Union expect unemployment to increase, the EU executive said.