Euro area consumer confidence weakens unexpectedly in August

Consumer confidence in the euro area cooled unexpectedly in August, according to the preliminary results of a survey.

The European Commission's 'flash' reading on sentiment fell from -7.9 to -8.5.

Economists had been expecting a reading of -7.7.

"It seems reasonable suspect that a further appreciable drop in Eurozone consumer confidence to a four-month low in August is influenced by concerns over the UK’s vote to leave the EU as well as by recent slower Eurozone growth," said Dr. Howard Archer, chief European+UK economist at IHS Markit.

"August’s drop in consumer confidence suggests that the UK’s Brexit vote is a significant threat to Eurozone growth prospects – even though there was little impact evident as the purchasing managers reported slightly faster services and manufacturing growth in August .

"Indeed, the further clear dip in confidence in August is a particular concern as there have recently been signs that Eurozone consumers may be faltering after being a key growth driver."