Economic and consumer confidence plummeted in Europe in March, according to official data released on Monday, in the latest evidence of how the Iran war is upending growth and inflation expectations.
Preliminary data from the European Commission shows economic sentiment declined in both the EU (down 1.5 points from the previous month to 96.7) and the euro area (down 1.6 points to 96.6) in March.
The figures, measuring economic sentiment across five key sectors of the European economy, also reveal employment expectations are under pressure across the EU and euro zone. Employers in the retail trade, services and industry sectors are all adjusting their employment plans against a backdrop of ongoing war in the Middle East.
The slump adds to a deterioration seen in February, but the Commission warned the latest data prints showed a "marked deterioration of economic sentiment in March", which had driven both economic sentiment and employment expectations "away from their long-term average of 100."
Consumer confidence also fell sharply to its lowest level since Oct. 2023, "driven by a dramatic decline in consumers' expectations for the overall economic situation in their country."
