Eurozone confidence weakens as economic sentiment hits four-year low

(Sharecast News) - Consumer confidence in the eurozone was confirmed at an eight-month low in December, while economic sentiment dropped to its lowest level in more than four years. According to revised estimates from the European Commission, the consumer confidence index weakened by 1.0 point to -14.5 last month, in line with flash figures released two weeks ago and the lowest level since April 2024.

The EC said that while consumers' views about their households' expected financial situation and past financial situation remained largely unchanged, people became "notably more pessimistic about the general economic situation in their respective country and their intentions to make major purchases".

The industry confidence indicator dropped by 2.2 to -14.1 in December, its lowest level since July 2020, and much lower than forecasts, with managers' production expectations, current order books and inventory levels all falling.

The economic sentiment index, which tracks opinions of businesses and consumers together, dropped sharply to 93.7 from 95.8, hitting its lowest mark since November 2020.

The biggest declines in economic confidence were seen in France (-3.0), Germany (-2.5), and Italy (-1.1), while the outlook improved in Spain (+0.9).