Euro-Region Consumer Confidence Declines More Than Estimated

Dec. 21 (Bloomberg) -- European consumer confidence dropped more than economists forecast in December to the lowest in more than two years, adding to signs of a deepening economic slump in the 17-nation euro region.

An index of household sentiment in the single-currency area fell to minus 21.2 from minus 20.4 in November, the Brussels- based European Commission said in an initial estimate today. That’s the lowest since August 2009. Economists had forecast a drop to minus 21, the median of 23 estimates in a Bloomberg survey showed.

Europe’s economy is edging toward a recession as governments toughen budget cuts to contain the fiscal crisis, undermining consumer demand. Unemployment increased in October to the highest in more than a decade and L’Oreal SA, the world’s largest cosmetics maker, said on Nov. 7 that consumer confidence is “weak and markets are proving difficult.”

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