European consumer confidence declined in February as rising unemployment and surging energy costs eroded households' willingness to spend.
An index of consumer confidence in the 16-nation euro region dropped to minus 17.4 this month from minus 15.8 in January, the Brussels-based European Commission said today in a "flash" estimate. The commission's monthly report on economic confidence, which includes the consumer-confidence index, will be published on February 25th.
European consumers may remain reluctant to step up spending as a 4.5 per cent surge in oil prices over the past two months leaves them with less money to spend as companies continue to cut jobs.
The euro was little changed against the dollar after the data, trading at $1.3635 at 3.05pm in London, up 0.2 per cent on the day.
Unemployment in the euro region rose to 10 per cent in January, the highest in more than 11 years. With the jobless rate forecast by the commission to reach 10.7 per cent this year, consumers may keep a rein on spending. European retail sales failed to grow for a second month in December after posting the biggest drop in 13 months in the prior month.
For the 27-country European Union, the consumer-confidence index slipped to minus 13.6 in February from minus 13.1 in January, today's report showed.
Bloomberg