News & Reports News Year 2011 January , 2011 Consumer confidence falls in Eurozone

Consumer confidence falls in Eurozone

Official figures show that economic conditions may worsen as consumer confidence in the Eurozone countries has fallen to a

five-month low in January.

Households are unwilling to spend due to price increases, high unemployment and great austerity, the Associated Press reported on Thursday.

The European Commission said there was a decline in consumer confidence index for the Eurozone to minus 11.4 after December's drop to minus 11.

The index has experienced its lowest level since August following December's decline.

Since May, when Greece's financial position escaladed worries to a peak, no such drop has occurred.

The recovery from recession has been at different rates in the Eurozone countries. In spite of record low interest rates, the consumer sector has failed to cope with the new condition.

Industrial sectors, however, have benefitted from the pick-up in global trade and inventory restocking by firms.

Analysts said Thursday's figures do not bode well, especially as unemployment has not yet come down from above 10 percent.

Also, with an annual rate of 2.2 percent, the rising inflation piles up the pressure on wages
.