Eurozone Flash Consumer Sentiment Eases In February

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Eurozone consumer sentiment deteriorated in February after 10 months of improvement, the flash estimate released by the European Commission revealed on Thursday. The consumer confidence index dropped to minus 17.4 in February. According to final estimate released on January 28, consumer sentiment remained at minus 16 in January.

Confidence declined also among EU consumers, but to a lesser extent. The index slipped to minus 13.6 for February. The European Commission is set to issue the next Business and Consumer Survey results on February 25.

Jennifer McKeown, an economists at Capital Economics said deterioration in consumer confidence will further dent hopes of the recovery spreading to the consumer sector. The consumer confidence figure suggest that the region's consumers are worried by talk of aggressive fiscal tightening. With unemployment still rising and wage growth set to drop, a very strong consumer recovery seems like too much to hope for, said McKeown.

Commenting, ING Bank NV's economist Martin van Vliet said the figures underscore the need for the European Central Bank to tread cautious in withdrawing its unconventional stimulus measures, and to keep interest rates on hold for most of 2010.

Eurozone consumer sentiment deteriorated in February after 10 months of improvement, the flash estimate released by the European Commission revealed on Thursday. (Market News Provided by RTTNews)