Eurozone consumer confidence falls more than expected in January

Consumer confidence in the Eurozone fell more than expected in January.

The European Commission’s economic sentiment indicator slipped to 105 from 106.7 in December, falling short of economists’ expectations for a reading of 106.4.

Confidence was on the slide in all sectors apart from retail, where it remained steady.

In terms of countries, Spain saw the biggest decline in confidence, with Germany and Italy following close behind. However, sentiment in France and Holland improved.

Pantheon Macroeconomics said the headline figure was “ugly” but should rebound next month.

“Overall, the aggregate fall in sentiment echoes the message from other business surveys of slow start to the first quarter, but it does not change the key message from this survey of a continuing cyclical recovery.

“We also expect a rebound in February, as it is rare we see a month-to-month fall of this magnitude without a recovery the following month.”