Confidence among businesses and consumers in Europe declined again in February, according to the European Commission. Its business climate indicator for the eurozone fell to minus 0.36 in February from minus 0.32 in January, its second straight decline. "The recent evolution of the indicator indicates that the economic short-term outlook remains uncertain," the commission said. It added that the decline in confidence was "dominated by industrialists' negative assessment" of production expectations and order books.
The eurozone consumer confidence indicator fell to minus 19 from minus 17 in January, continuing what the commission described as a "rapid deterioration" in previous months. Despite the declines, the overall economic sentiment indicator for the eurozone was 98.2 in February, unchanged from January. But Eugene Kiernan, head of asset allocation at Irish Life Investment Managers, said today's figures "reinforce the case" for lower eurozone rates. The European Central Bank meets again next week, when it is expected to cut rates for the second time in four months. ///www.fxcentre.com