Eurozone confidence slides on geopolitical fears

The latest data from the European Commission (EC) has shown a drop in headline Eurozone consumer confidence, falling to -7.5 in June.

 

Analysts had expected to see data firm up slightly, with economists forecasting an increase to -6.7 this month from a reading of -7.1 in May.

 

In a preview of today's release, analysts at Societe Generale suggested that we'd see that geopolitical developments in Ukraine and Iraq, as well as fears over an economic slowdown in China would have had a marginal impact on confidence this month.

 

HSBC staffers said in advance of the data that while recent survey data may show momentum slowing "the overall outlook is still positive".

 

Other indicators of confidence also failed to meet expectations. The EC's economic sentiment indicator dropped from a downwardly revised 102.6 to 102, below forecasts of a small rise to 103.