Euro Zone Economic Confidence Falls to Record Lows in March

According to the Commission report, economic sentiment in the euro zone fell to a record low 64.6 in March, despite expectations of a mild improvement to 65.4 from February’s 65.3 level. Furthermore, February’s figure was revised down from an initial estimate of 65.4.

The weakness in morale was widespread, the Commission said. Consumer confidence fell to -34 from the previous month’s -33 level as expected, while sentiment in the industrial sector worsened to -38 in March, down two points from February’s figure. Economists had expected no change to the reading.

Services sentiment also lost ground, falling to -25 for the month, down from both the -24 reading expected and recorded previously. Meanwhile, February’s figure was revised down from -23.

The Commission also reported that its business climate index deteriorated beyond expectations to -3.58, its lowest level since January 1985. Forecasts had suggested a more modest fall to -3.48 from February’s -3.4, revised up from an initial estimate of -3.51.

The euro is currently trading down 0.83% at 1.318 USD.