New data shows euro zone economic sentiment deteriorated by far more than expected this month, with optimism falling across all sectors and consumer confidence hitting a new record low amid the war in Ukraine and raging inflation.
The European Commission said its economic sentiment index fell to 99.0 points in July from 103.5 in June, well below the average expectation of a decline to 102.0 in a Reuters poll of economists.
Sentiment in industry worsened to 3.5 points from 7.0 in June, against economists' expectations of a fall to 6.0.
Optimism in services, the sector that generates more than two thirds of euro zone's GDP, fell to 10.7 from 14.1, compared with expectations of a decline to 13.5.
The mood among consumers deteriorated to -27.0 from -23.8, hitting a new record low since measurements started in 2000.
The mood was further soured by a further rise in inflation expectations 12 months ahead among consumers, where they edged higher to 42.8 from 42.6 in June.
Selling price expectations in industry, however, eased to 45.1 from 50.1 in June.