Eurozone economic confidence declines in June

Economic confidence in the Eurozone declined slightly in June, official figures released on Monday showed, as businesses grew more cautious.

The European Commission´s economic sentiment index retreated in June to a reading of 105.5 from 106.4 in the month before.

A sub-index of industrial confidence fell back to -3.3 points after a print of -2.6 in the month before. Optimism also weakened among service sector firms to reach a reading of 8.6, down from 11.0.

Another gauge linked to consumers´ sentiment improved slightly, to -3.3 from -4.0 in April.

Confidence among financial services firms on the other hand jumped to 24.5 from 15.2.

Comenting on the survey results, Dr.Howard Archer, chief UK+European economist at IHS Global Insight said: “There is clearly a very real risk that sentiment (particularly business sentiment) could now take a major downward lurch with potentially damaging implications for the Eurozone’s economic recovery. Much will clearly depend on just how events in Greece turn out and what contagion there is in the markets.”