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Eurozone Consumer Confidence Unexpectedly Weakens In June

eurozoneflag aug23 20jun19 lt

Eurozone consumer confidence dropped sharply in June, almost entirely erasing May's gain, amid rising concerns regarding the weaker outlook for the global economy, preliminary figures from the European Commission showed on Thursday.

The flash consumer confidence index declined to -7.2 from -6.5 in May. Economists had expected the index to remain unchanged. In April, the reading was -7.3.

The consumer confidence index for the EU also shed 0.7 points in June to reach -6.9.

Both the Eurozone and the EU confidence reading remained above their long-term averages of -10.7 and -10, respectively.

Detail consumer confidence data is set to be published along with the economist sentiment indicator on June 27.

Elsewhere, Belgium's consumer confidence also eroded in June, completely reversing the previous month's gain.

The National Bank of Belgium's consumer confidence index dropped to -7 from -5 in May. In April, the score was -7.

The loss of confidence is mainly attributable to less optimistic expectations regarding economic developments, the bank said.

The expectations regarding the economic situation in Belgium in the next twelve months weakened to the lowest level since April 2013 and fears regarding an increase in unemployment grew.

However, households were more optimistic regarding their personal financial situation and expect to save more over the coming months.

"Even though the household income situation is moving in the right direction, growth concerns seem to be the cause of increased pessimism," ING economist Bert Colijn said in a comment on the Eurozone data.

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