The European Commission said that the consumer confidence in the Eurozone has hit the lowest level in 5 years in March.
The flash consumer confidence indicator for the Eurozone dropped by a record 5 points to -11.6, the lowest level since 2014 and also lower than its long-term average.
The EU consumer confidence also fell, by 4.5 points to the long-term average of -10.4.
Severe lockdowns on several countries in Europe to limit the spread of the new coronavirus has cast dark clouds on the region’s economy, following the already-slowing economy before this crisis.
Melanie Debono, a European economist at Capital Economics said that the governments are taking measures to keep the level of employment. However, the effort will only limit the increase in unemployment rather than prevent it.
Consumers in the region are fearing the impact of the shutdown of many non-essential business would flare the unemployment number.
On Monday, Credit Suisse forecast the Eurozone economy to fall by 4% in 2020 before growing by 5% in 2021.
