European economic confidence at a 15-year low

With the index of consumer sentiment down 7.1 points to 80.4, the European Commission report that has been released today, shows how the current economic crisis has brought confidence down to a 15-year low.

Companies are finding it increasingly difficult to access funding and with recession looming, the outlook does look bleak.

The EU survey has revealed that the Dutch have the most pessimistic outlook about the economy, although France, Italy and Germany were also pessimistic about the next few months.

The manufacturing industry has been the hardest hit with carmakers, airlines and computer parts firms all struggling, which has resulted in continual cuts in interest rates and bailouts in order to maintain the economy.

Germany’s second biggest airline, Lufthansa, said that it has now been forced into the position where due to the slowdown is having to trim down its expansion plans.

Consumer confidence across the 27 European Union nations are at such a low as a result of the volatility of the labour markets, as both the manufacturing and services industry are facing job cuts in the future.

Consumer prices are now finally falling, although the threat of inflation does still remain and it is tied closely to the cost of energy, food prices and, of course, the barrel of oil.

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