European consumer and business confidence slumped to a new record low in March although the pace of decline slowed in a possible sign of stabilisation, according to the latest EU survey.
The European Commission's economic sentiment indicator for the euro zone eased to 64.6 points in March, from 65.3 points in February, hitting the lowest point since the survey began in 1985.
In the 27-nation European Union, the index fell to 60.3 points from 60.9, as the rate of decline slowed after a series of sharp drops when the economic crisis took a turn for the worse last September.
While the outlook in the industrial and service sector continued to deteriorate, the retail industry saw an improvement in both the euro zone and the broader EU.
Consumer confidence weakened only slightly in the euro zone and was stable in the EU even though the economy remains in the grip of the worst recession in decades.
Meanwhile, the commission's separate business climate indicator also continued to worsen, falling to its lowest level since it started in 1985. The index fell to -3.58 points from -3.40 points.
Despite the slower decline in overall economic sentiment, economists said the European economy was not out of the woods yet.
