Euro-area economic confidence slowed for a sixth month as the region struggles under the weight of higher interest rates, still elevated inflation and geopolitical tensions, according to Bloomberg.
A sentiment gauge published by the European Commission inched down to 93.3 in October, from a revised 93.4 a month earlier. Economists had predicted a more significant drop.
The decline was driven by the sub-indicator for industry and retail trade, while services saw an uptick.
The euro region is facing a dire winter. The economy probably stalled or even contracted in the third quarter under the cumulative weight of successive interest-rate hikes.
Germany, Austria and Ireland all contracted in the period and private-sector activity — as measured in purchasing managers’ indexes — suggest the final three months of the year.
Consumer-price data have been more positive of late, though the projected 3.1% euro-area inflation reading for October — due Tuesday — is still far off the European Central Bank’s 2% target.
