Eurozone confidence falls as Italian sentiment weakens in September

  • European Commission data showed eurozone economic confidence falling in September, while Italy reported weaker consumer and business sentiment.
  • The eurozone gauge fell to 97.9 from 98.4, and Italy's consumer-confidence index dropped to 91.2 from 94.5.
  • Italian manufacturing confidence rose to 91.9 despite broader business-morale deterioration, with first-half GDP stronger than expected.

Eurozone economic confidence deteriorated in September, ending a four-month recovery, as elevated energy costs linked to the war in Iran pressured businesses and consumers. The European Commission's gauge fell to 97.9 from 98.4 in August, below economists' 98.9 consensus expectation. In Italy, consumer confidence dropped to 91.2 from 94.5 and composite business morale declined to 95.9 from 97.0, although manufacturing confidence improved and stronger-than-expected first- and second-quarter GDP suggested some resilience.

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