An EU survey has shown that confidence in the euro zone slumped to a three-year low point in June, while separate figures showed rising inflation in two of its biggest economies.
This comes ahead of a meeting next week where the European Central Bank is widely expected to raise interest rates to combat inflation, despite fears about growth.
An official estimate from Germany showed that consumer prices climbed at an annual rate of 3.3% in June, the fastest pace since 1993 and up from 3% in May. Meanwhile, Spanish inflation hit a record 5.1% in June.
The European Commission's euro zone economic sentiment indicator dropped to 94.9 points in June from a revised 97.6 the previous month, with consumer confidence sharply down and the manufacturing sector noticeably weak.
It was the lowest level since May 2005. Economists had expected it to ease but only to 96.1 points.
The European Commission's separate monthly business climate indicator for the euro zone also declined, dropping to 0.14 points in June from 0.58 in May. Separate figures showed that Spanish inflation hit a record 5.1% in June.
Earlier, figures from the European Central Bank showed that the euro zone payments current account 'was close to balance' in April, after posting a sharp deficit of €13.2 billion in March.
The current account is the euro zone's widest measure of euro zone trade and financial transactions with countries outside the 15-nation area, but ECB estimates are subject to marked revisions, making comparisons difficult.
