Eurozone consumer confidence hits lowest since December 2022

(Sharecast News) - Consumer confidence levels across the eurozone plummeted to their lowest in three and a half years in April, as growing geopolitical uncertainty and soaring energy prices hammered sentiment. The European Commission's consumer confidence indicator for the single-currency region dropped 4.2 percentage points to hit -20.6% as sentiment "continued its free fall since the start of the Iran war", the report said.

This was the lowest mark for the indicator since December 2022, and significantly below its long-term average.

The wider EU consumer confidence indicator also fell 4.0pp to reach -19.4, also hitting a level not seen in 40 months.

The news came as Brent crude jumped back above the $100 mark on Wednesday afternoon after Iran attacked three commercial ships along the Strait of Hormuz, raising fears that tensions between Tehran and Washington could escalate despite the extension of their ceasefire agreement late the night before.

Surging oil prices have ramped up inflation concerns among consumers in recent months, with markets already pricing in two interest rate hikes (equal to a 50 basis point rise) by the European Central Bank this year.