Eurozone consumer confidence deteriorated for a second straight month in May and at a faster-than-expected pace, preliminary estimates from the European Commission showed Thursday.
The flash consumer confidence index dropped to -5.5. from -4.6 in April. Economists had forecast a score of -4.8.
The indicator dropped for the first time in five months in April from a pre-crisis high attained in March.
The consumer confidence index for the EU shed 1.8 points to reach -4.
The final figures will be released along with the economic sentiment data on May 28.
ING Bank economist Teunis Brosens said the deterioration in consumer confidence can be partly explained by the fact that rising oil prices are felt at the pump and the financial market turmoil.
“But even after this correction, Eurozone consumers remain upbeat, with sentiment still well above its long term average of -12.5. This leaves scope for retail sales to rebound after their disappointing setback in March,” Brosens noted.
“Barring a Greek accident, the economic outlook for the Eurozone remains brighter than it has ever been in recent years, with scope for further gains in both consumption and business investment.”
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