Crisis Throws Europe into Deepest Gloom in 15 Years

Oct. 30, 2008
Widespread weakness across Europe as the financial crisis began taking a heavy toll on the broader economy

The worst financial crisis for generations and a looming recession drove European consumer and business confidence to a 15-year low in October, an EU survey showed on Oct. 30.

Following other recent weak data, the European Commission's eurozone economic sentiment indicator, including consumer confidence, fell to 80.4 points in October from 87.5 points in September. The drop, the sharpest one-month decline on record, brought the index to the lowest point since November 1993.

Overall confidence in the economy of the broader 27-nation European Union also fell to its lowest level since 1993, tumbling to 77.5 points in October from 84.9 in September.

The index, which covers sentiment in the industrial, services, consumer, retail and construction sectors, showed widespread weakness across Europe as the financial crisis began taking a heavy toll on the broader economy.

The European Commission's separate monthly business climate indicator for the eurozone retreated to its lowest level since 2001, dropping to a minus 1.34 points in October from minus 0.82 in September.

"It is increasingly clear that the difficulties have moved far beyond the boundaries of the financial system," said Bank of America economist Gilles Moec. "Businesses are slashing their investment and hiring plans. Households are raising their precautionary savings," he added.

Evidence of slumping economic sentiment in Europe comes on the heels of a U.S. survey on Oct. 28 that showed consumer confidence in the world's biggest economy at the lowest level on record.

Copyright Agence France-Presse, 2008

Popular Sponsored Recommendations

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Beware Extreme Software

Sept. 24, 2023
As a manufacturer, you understand the importance of staying ahead of the curve and being proactive in your approach to technology. With the rapid pace of change in the industry...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!