Euro-Zone Consumer Confidence Dips to 3-Year Low
THE TAKEAWAY: Euro-zone consumer confidence reported at -21.5, slightly higher than previously estimated -> Economic confidence disappoints expectations at 87.9 -> Euro falls below 1.2300
Euro-zone consumer confidence was confirmed at the lowest level in nearly 3-years according to a survey released by the European Commission. Consumer confidence was reported at -21.5 in July, higher than the previously estimated -21.6.
Euro-zone economic confidence was reported at 87.9 in July, lower than the expected 88.9 and June’s 89.9 survey result. The business climate indicator was reported at -1.27 for July, also disappointing expectations for a -1.09 survey result. June’s business climate indicator was revised lower to -0.95.
The continued dip in confidence is another sign of the effects of the Euro-zone debt crisis. The Euro received a lift last week when European Central Bank President Draghi said the bank would use any means necessary to preserve the single currency.
The Euro rose slightly at the time of the consumer confidence release, making it up to 1.2290 before falling back towards 1.2270. Following the weekly open, the currency slowly fell below the 1.2300 psychological line.
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