Economic sentiment in the euro zone dipped more than expected in February, the European Commission said today, adding to concern that the US and Japanese slowdown could spread to Europe.
Analysts said the data indicated that the deceleration seen in other major economies was slowly filtering into Europe, although the euro zone remained in comparatively good shape.
The headline index for the euro zone fell to 102.7 in February from a revised 103.1 in January. Economists expected on average the headline index for the euro zone to be at 103.0.
"The fall is nothing near as dramatic as the US decline, but it does convey the impression that Euroland is not immune from the downturn that is effecting most economies," said Mr James Shugg, senior economist at Westpac in London.
Analysts said they did not expect the decline in confidence to lead to a interest rate cut by the European Central Bank any time soon.
"The drop is very modest," said Mr Ryan Shea, international economist at Bank One in London.
Until headline inflation falls below two percent, the ECB will probably refrain from cutting interest rates.