Eurozone confidence lowest in five years

BUSINESS and consumer confidence in the eurozone has fallen to its lowest level in five years and at the fastest pace since the 9/11 attacks in the US, with all indicators including services and retail showing a drop.

However economists said they do not believe the eurozone is in for a recession, instead predicting stagnation until the spring, followed by a rebound.

They also say the growing lack of confidence among German businesses increases the case for the ECB not raising interest rates in an effort to halt inflation.