Euro-area economic confidence slowed more than anticipated this month, further overshadowing the region’s outlook.
(Bloomberg) — Euro-area economic confidence slowed more than anticipated this month, further overshadowing the region’s outlook.
A sentiment gauge published by the European Commission slid to 93.3 from 94.5 in July. That’s the fourth monthly decline and worse than the median forecast in a Bloomberg survey of economists.
Sub-indicators for services, industry and consumer expectations also decreased.
Third-quarter indicators have been dire so far, with PMIs last week signaling the private-sector activity may be contracting in the euro zone and its top two economies.
Evidence of economic weakness will provide ammunition to any dovish European Central Bank policymakers seeking to argue against a potential interest-rate hike on Sept. 14. Their hawkish counterparts are warning inflation pressures may be too strong to risk a pause in tightening.
Spanish consumer price growth quickened in August, data earlier on Wednesday showed. German figures are due this afternoon and an overall report for the euro region will be released on Thursday.
–With assistance from Joel Rinneby, Barbara Sladkowska and Kristian Siedenburg.
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