Euro Area Consumer Confidence Plummets on Russia’s Invasion of Ukraine

Eurozone consumer confidence plunged to its lowest level since the start of the pandemic as Russia’s invasion of Ukraine drove energy prices higher and could worsen inflation rates.

Source: European Commission

EuroStoxx50 down -1.47%, EURUSD down -0.24%

An index from the European Commission reported a reading of -18.7 in March, down from -8.8 in February and worse than all estimates.

The war on the currency bloc’s border has intensified concerns that inflation will accelerate further as economic expansion will lag.

In a “severe” scenario, the European Central Bank expects price gains to worsen to 7.1% this year, with growth at only 2.3%.