A measure of how EU consumers and businesses feel about the economic outlook fell to an all-time low this month.
The European Commission survey comes as many EU economies face the prospect of recession.
The EU economic sentiment indicator tumbled to 70.5 points in November from 77.2 in October, hitting the lowest level since the survey was created in January 1985.
Meanwhile, the EC's eurozone economic sentiment indicator fell to 74.9 points in November from 80.0 points in October, dropping to its lowest level since August 1993.
The slump in eurozone confidence exceeded by a wide margin economists' forecasts for a fall to 78 points, as polled by Dow Jones Newswires.
'Reflecting the widespread deterioration in economic sentiment, all EU countries reported weakening sentiment,' the commission said.
Economists said that retreating confidence painted a dark outlook for the European economy, which has been getting worse almost by the day.
'The further plunge in economic sentiment in November bodes ill for investment, employment and consumer spending,' said IHS Global Insight economist Howard Archer.
He added that it also heightens fears that the region's recession would be deep and prolonged.
The EC's separate monthly business climate indicator for the eurozone retreated to the lowest level since October 1993, dropping to a negative 2.14 points in November from a negative 1.34 in October.
